Dutch bank ING (NYSE: $ING) is reported to be developing a %Stablecoin.
The lender based in Amsterdam is apparently trying to take advantage of Europe’s new cryptocurrency regulations that came into force in 2024.
The new stablecoin could potentially involve other European banks and crypto service providers, although no official announcements have been made.
Europe’s “Markets in Crypto Assets” policy, known as “MiCA,” requires stablecoin issuers across the European Union (EU) to hold an authorization license, which ING is seeking.
Details of the stablecoin are limited right now. However, it is reported that it will be pegged to the Euro currency.
A stablecoin is a %Cryptocurrency whose value is pegged to another asset, typically the price of gold or the U.S. dollar.
MiCA’s stablecoin rules also require issuers to maintain significant reserves in banks based in Europe. ING will not be the first European bank to issue a stablecoin.
French lender Société Générale was the first European bank to offer a stablecoin through its SG Forge innovation division.
With its stablecoin, ING will also compete for investors against the world’s two largest stablecoins, Circle’s (CRYPTO: $USDC) and Tether’s (CRYPTO: $USDT) digital assets.
The stock of ING, which trades on the New York Stock Exchange (NYSE), has risen 20% this year to $18.56 U.S. per share.
