FRANKFURT (Reuters) -A consortium of nine European banks – including ING and UniCredit – announced on Thursday that they are forming a new company to launch a euro-denominated stablecoin.
The new company is based in the Netherlands and aims to be overseen and licensed by the Dutch central bank.
Stablecoins are digital tokens designed to keep a constant value and are backed by traditional currencies such as the U.S. dollar or euro.
The other banks include Banca Sella, KBC, Danske Bank, DekaBank, SEB, CaixaBank and Raiffeisen Bank International.
The banks announced that others could join the initiative, and a CEO for the company would be appointed soon.
“We are contributing to fill the need for a trusted, regulated solution for on-chain payments and settlement, paving the way for a new standard in the digital asset space that will support Europe’s growth and financial sovereignty,” said UniCredit head of strategy Fiona Melrose.
(Reporting by Tom SimsEditing by Ludwig Burger and Miranda Murray)
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