European bank ING is launching a blockchain-based stablecoin project, marking the beginning of a new era for regulated stablecoins in the EU.
ING Enters European Stablecoin Market Amid MiCA Regulations
Europe’s Markets in Crypto Assets (MiCA) has opened the door for banks to issue regulated stablecoins across the 27-state trading bloc, and Dutch bank ING is taking advantage of this new regulatory landscape. According to two people familiar with the plans, ING is working on a stablecoin project that could take the form of a consortium effort involving other banks and crypto service providers.
ING’s Stablecoin Project: A Consortium Effort?
The nature of ING’s stablecoin project remains unclear, but it appears to involve multiple parties. ‘ING is working on a stablecoin project with a few other banks,’ one source said. However, the development process is slow due to the need for board approval from each participating bank. This requirement highlights the complexity and regulatory burden associated with launching a new stablecoin.
MiCA’s Stablecoin Rules: A New Era for EU-Regulated Stablecoins
Europe’s MiCA regime has introduced significant changes for the stablecoin market, requiring issuers to hold an authorization license and maintain substantial reserves in banks based in Europe. These rules have strengthened compliant offerings like Circle’s euro stablecoin EURC, which now faces competition from ING and other new entrants.
MiCA, short for Markets in Crypto-Assets, is a proposed regulatory framework by the European Union aimed at governing digital assets.
The regulation aims to provide clarity and transparency in the crypto market, ensuring investor protection and promoting fair competition.
Key aspects of MiCA include licensing requirements for crypto service providers, consumer protection measures, and anti-money laundering regulations.
By establishing clear guidelines, MiCA seeks to increase trust in the digital asset space while balancing innovation with regulatory oversight.
Competition Heats Up: Société Générale Faces New Challengers
As ING enters the European stablecoin market, French lender Société Générale will soon face increased competition. Having been the first big bank to offer a stablecoin through its SG Forge innovation division, Société Générale can now expect rival banks like ING to challenge its offerings.
Societe Generale is a French multinational banking and financial services company headquartered in Paris.
Founded in 1864, it is one of the largest banks in Europe with operations in over 70 countries worldwide.
The bank offers a range of financial services including retail banking, corporate and investment banking, asset management, and private banking.
Societe Generale has a significant presence in emerging markets and is known for its commitment to sustainability and social responsibility.
Stablecoin Market Growth: A $2 Trillion Opportunity by 2028?
The stablecoin market is expected to experience significant growth in the coming years. According to Standard Chartered, the stablecoin market could reach $2 trillion by the end of 2028. As more banks and crypto service providers enter the European stablecoin space, this growth potential will be driven by increased competition and regulatory clarity.
