Europe’s MiCA regulation is opening up opportunities for major banks to enter the market, and one bank has already taken notice.

Dutch banking giant ING is reportedly preparing to enter the Euro stablecoin market. According to a report by CoinDesk on Tuesday, April 22, ING is setting up a consortium with several other banks to develop and launch a Euro-based stablecoin.

While ING declined to comment on the ongoing plans, CoinDesk cited two sources familiar with the matter who confirmed that the process is underway. However, the sources noted that progress has been slow as the group awaits regulatory approval to establish a joint entity.

ING is not the only European bank that entered the stablecoin market. For one, Société Générale’s subsidiary SG FORGE already launched its own Euro-backed stablecoin on Stellar.

MiCA regulation clears the way for banks in stablecoins

The move hopes to take advantage of the European Union’s Markets in Crypto Assets regulation, which sets stringent rules for stablecoin issuance. Notably, the regulation drove out big competitors from the market, including the largest stablecoin issuer, Tether.

At the same time, the European Central Bank’s CBDC is still awaiting approval. This is opening up space for banks to offer private solutions to the EU’s fragmented payments network.

Although the ECB hopes to launch the Digital Euro by October this year, it has received some pushback from the European Commission. This is because member states are much more skeptical of a EU-wide CBDC.

Meanwhile, the U.S. is also catching up to the EU on regulation, as its STABLE Act is currently in the approval process. The planned act, which would regulate stablecoin issuance, is already attracting several players in the market.

This includes Visa, which is already experimenting with using stablecoins for card settlements. The Trump-linked World Liberty Financial has also launched its USD1 stablecoin, prompting criticism over potential conflicts of interest.