Banks across Europe are increasingly treating euro-denominated stablecoins as a strategic response to intensifying competition from dollar-backed tokens.
Twenty-two of Europe’s 29 largest banks are working on euro stablecoin projects, signaling that major lenders are taking euro-denominated digital tokens more seriously as pressure from dollar-backed stablecoins grows. The development points to a broader competitive push by European banks to defend relevance in digital payments and tokenized finance, where stablecoins are typically designed to maintain a fixed value against fiat currencies.