Europe banks to launch stablecoin in bid to counter US dominance

A consortium of nine European banks, including ING and UniCredit, said on Thursday they are forming a new company to launch a euro-denominated stablecoin, a move they hope will help counter US digital market dominance.

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A host of top US financial firms have been preparing to launch their own dollar-backed crypto tokens after President Donald Trump signed a law overseeing rules for stablecoins that could further cement US hegemony.

The use of stablecoins - designed to maintain a constant value and backed by traditional currencies - has exploded in recent years, notably among crypto traders moving funds to and from more volatile tokens. But they are also used in mainstream digital payments and cross-border transactions.

The European banks' new Amsterdam-based company is expected to launch its stablecoin in the second half of next year.