Italy's Bancomat aims to roll out a euro-pegged stablecoin to boost digital payments, with plans to open the system to other issuers. The project is led by Bancomat in collaboration with Italy’s major lenders and the economy ministry, according to Chief Executive Fabrizio Burlando. Burlando, who previously held roles at Mastercard, took the helm in June 2024 after private equity firm FSI invested €75 million for a 43% stake, making it the lead shareholder. The stablecoin would be backed by euro-denominated debt and designed for use by trusted financial institutions across Europe, not just Bancomat itself. Bancomat envisions a 2026 launch and widespread access for regulated Italian and European entities to maximize adoption. Burlando emphasized interoperability as essential to their strategy, noting that as a national payment scheme, Bancomat has already engaged with seven partners in other countries, including Spain’s Bizum, to support instant cross-border payments under its European Payments Alliance initiative. He argued that a single, interoperable digital currency is preferable to the proliferation of non-cohesive, separate currencies.
The broader stablecoin market has grown rapidly since 2014, with the European Banking Authority (EBA) estimating roughly $300 billion in market size in 2025 and urging lenders to manage associated risks prudently. The EBA’s report noted 27 stablecoins registered under the EU’s Markets in Crypto Assets Regulation (MiCA), issued by 17 institutions across 10 countries. Euro-pegged stablecoins have roughly doubled in value since MiCA rules started in mid-2024, reaching about $500 million in circulation and recording monthly volumes around $3.83 billion, according to DECTA. Despite this growth, dollar-backed stablecoins dominate the landscape, representing about 98% of the market. The leading issuers are Tether and Circle, which together account for roughly 56% and 25% of the market, respectively, as reported by the Bank of Italy in September.
In response to U.S. prominence in international payments, a coalition of 10 European banks has proposed launching a euro-pegged stablecoin in the latter half of 2026. France’s Societe Generale became the first European bank to issue a MiCA-licensed euro-stablecoin in 2023 through its crypto-asset arm, though EUR CoinVertible has seen limited adoption, with circulation of about €64.7 million to date.
This evolving landscape highlights both the appetite for euro-denominated digital money and the ongoing competition with dollar-based tokens. It also raises questions about regulatory risk, cross-border interoperability, and the potential impact on traditional payment rails. As these plans unfold, observers may debate whether euro-stablecoins will achieve meaningful adoption across Europe, or if continued U.S.-issued tokens will retain dominance in the global payment ecosystem.
