Dutch bank ING may be developing a new stablecoin in collaboration with TradFi and cryptoassets companies: sources | CoinDesk JAPAN

• The EU-wide MiCA regulations have opened the way for banks to issue regulated stablecoins across the 27 member countries.
• If banks like ING enter the European stablecoin market, they will compete with the French financial institution Société Générale.

Dutch bank ING is working on the development of stablecoins to leverage the new cryptoassets regulations that were implemented in Europe last year, as revealed by two sources familiar with the plan.

The ING stablecoin project may take the form of a consortium that includes other banks and cryptoassets service providers, both parties stated.

"ING is working on stablecoin projects with several other banks. One of the stakeholders stated that the project is progressing slowly because board approval is required for multiple banks to establish a joint venture."

ING refrained from commenting.

The European cryptoassets market regulation (MiCA) mandates that stablecoin issuers in European Union (EU) member states obtain a license, promoting the potential for euro-denominated stablecoins (most of the circulating stablecoins are pegged to the US dollar).

According to a memo released by JP Morgan earlier this year, the MiCA stablecoin regulations require issuers to maintain sufficient reserves at banks based in Europe, and products compliant with such regulations, like Circle's euro-denominated stablecoin EURC, hold a stronger position than their main competitor, Tether.

The entry of banks like ING into the European stablecoin market means that the French financial institution Société Générale will soon face competition. Société Générale is the first major bank to offer a stablecoin through its innovation division, SG Forge.