Dutch Banking Giant ING’s Move into Stablecoins
Dutch banking giant ING is in the process of creating a stablecoin, as disclosed by sources with insider knowledge of the initiative. This move is strategic, taking advantage of the freshly established European regulatory framework for cryptocurrencies.
Collaboration and Regulatory Compliance
Furthermore, ING’s plan may involve forming a consortium with various banks and crypto service providers, enhancing collaborative efforts in this emerging market.
The new Markets in Crypto-Assets Regulation (MiCA) implemented by the EU presents specific requirements for issuers of stablecoins, mandating that they acquire a license and focus primarily on Euro-based stablecoins. Presently, most stablecoins are aligned with the U.S. dollar.
A recent analysis by JPMorgan highlighted that the MiCA regulations favor Circle’s Euro stablecoin, EURC, due to the obligation for issuers to maintain adequate reserves in European banking institutions, potentially putting pressure on competitors like Tether.
Implications for the Banking Landscape
With ING stepping into the stablecoin arena, it signals intensified competition for institutions like Société Générale, which was the pioneer in releasing a bank-backed stablecoin through its innovation arm, SG Forge. This marks a significant shift in the traditional banking landscape towards embracing digital assets.
