ING Backs Euro Stablecoin to Challenge Dollar Dominance

This partnership marks a turning point in Europe’s race to catch up. U.S. dollar-pegged stablecoins like USDT and USDC still dominate the market.

As the European Central Bank inches forward with plans for a digital euro, the private sector isn’t sitting still. ING’s initiative reflects growing momentum across the EU to provide reliable, regulated alternatives to dollar-backed digital currencies. It also signals a push to regain financial autonomy in the digital asset space.

Why Euro-Backed Stablecoins Matter

Stablecoins are digital currencies pegged to a stable asset, typically a fiat currency like the U.S. dollar or euro. They aim to combine the speed of crypto with the stability of traditional money. But here’s the catch: over 98% of stablecoin volume currently revolves around the dollar, according to Kaiko Research. Relying on U.S.-linked assets exposes Europe to forex risks and limits its influence in the digital economy.

ING’s planned stablecoin aims to flip that script. Backed by euros and European regulation, it provides a local solution for cross-border payments and tokenized finance. It also aims to streamline everyday transactions. It’s expected to comply with MiCA—the EU’s landmark Markets in Crypto-Assets regulation. This ensures high standards for transparency, security, and consumer protection.

A Trend Picking Up Steam

This isn’t the first push for a euro-pegged digital currency. French startup Angle Labs launched agEUR, and fintech Monerium recently teamed up with Cosmos-based Noble to introduce EURe—Europe’s first fully regulated euro stablecoin.

The market is taking notice. As of Q1-2025, euro-backed stablecoins account for less than 2% of the $150 billion stablecoin market, but that number is slowly rising. ING’s involvement could be the catalyst that tips the balance, especially as traditional banks bring trust, compliance infrastructure, and customer reach to the table.

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