Dutch Banking giant ING is reportedly developing a stablecoin compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulation.
ING is working with a group of other financial institutions to set up a consortium that would eventually launch a MiCA-compliant euro-pegged stablecoin, as per a CoinDesk report.
While ING has declined to officially comment on the project, the sources have confirmed in the report that the initiative is already in motion.
However, they added that progress has been slow, largely because the participating banks are still seeking regulatory approvals to establish a joint entity under the European Union’s crypto framework.
If successful, ING’s stablecoin would put it in direct competition with France’s Société Générale, which launched its compliant token through SG Forge.
While Société Générale was among the first movers, it looks like other major players are preparing to follow now that MiCA is in effect.
Crypto firms struggle to comply
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MiCA has been touted as the European Union’s answer to a comprehensive crypto framework, which officially came into effect in December 2024.
Until now, crypto regulations were fragmented across the bloc, making it hard for businesses to scale.
MiCA is designed to unify these rules under a single regulatory framework applicable across all 27 EU member states.
Under MiCA, stablecoin issuers must meet a long list of requirements.
That includes registering as either an Electronic Money Institution or a Crypto-Asset Issuer, maintaining 1:1 reserves backed by cash or government bonds, and publishing detailed white papers explaining how the token works.
They also need to hold those reserves with trusted third-party custodians and submit regular reserve reports to regulators.
Tokens with a large user base or high market cap, what MiCA classifies as “significant” stablecoins, face even tighter oversight, including additional capital requirements and more frequent reporting.
But while MiCA promises consumer protection and legal clarity, not everyone is sticking around for it.
TRM Labs recently found that many crypto firms are exiting the bloc, merging, or shutting down rather than going through the complex approval process.
As of mid-April, only 17 companies had secured MiCA authorisation across the EU, out of over 1,000 active players previously registered.
Notably, firms like Ethena Labs have pulled out altogether, winding down their German operations after failing to meet MiCA standards.
Concerns remain
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While MiCA aims to bring clarity and investor protection, the rollout hasn’t been smooth for everyone.
Many crypto firms have exited the European market altogether, citing the cost and complexity of compliance.
Supporters say MiCA is a necessary step to legitimise the crypto industry in Europe and attract more institutional players.
Others, including the European Central Bank, are calling for even tighter restrictions to guard against an influx of dollar-backed stablecoins, which they say could threaten the EU’s financial sovereignty.
One high-profile casualty of MiCA’s rules is Tether.
Despite being the largest stablecoin issuer globally, Tether failed to secure approval under the new EU regime.
As a result, a number of exchanges operating in the region have delisted USDT.
