Dutch banking giant ING is joining forces with other major banks to develop a new stablecoin. This collaboration aims to create a reliable digital currency that keeps its value steady, unlike Bitcoin and other volatile cryptocurrencies.
The project, still in early stages, shows how traditional banks are warming up to blockchain technology. ING hasn’t named its partners yet, but industry experts believe several European financial institutions are involved. The banks want to offer a digital payment option that works across borders without the wild price swings we see in most cryptocurrencies.
Stablecoins are digital currencies tied to assets like the US dollar or gold. They combine the benefits of crypto – fast transfers and programmability – with the stability of traditional money. For everyday users, this means potentially cheaper and faster international payments without worrying about value fluctuations.
“This is a significant step for mainstream finance embracing blockchain technology,” says Marco Santori, Chief Legal Officer at Kraken exchange. “When major banks create their own stablecoins, it signals growing confidence in digital assets as part of the financial future.”
ING has been quietly building blockchain expertise for years. Back in 2021, they joined the Fnality project, which focused on blockchain settlement systems. Their new stablecoin venture takes this interest to another level by creating an actual digital currency.
The timing makes sense given recent regulatory clarity in Europe. The EU’s Markets in Crypto-Assets (MiCA) framework now provides clear rules for stablecoin issuers. This regulatory certainty gives banks like ING more confidence to enter the space.
For businesses, a bank-backed stablecoin could streamline international transactions. A company in Amsterdam could pay a supplier in Milan instantly, without currency conversion fees or multi-day settlement periods. This efficiency could be particularly valuable for small businesses that find traditional banking services expensive.
The banking consortium faces competition from established stablecoins like USDC and USDT, which together account for over $100 billion in market value. However, a bank-issued stablecoin might attract customers who want the innovation of crypto with the security of traditional banking.
“Banking giants entering the stablecoin market changes the game,” explains Alex Tapscott, blockchain author and co-founder of the Blockchain Research Institute. “They bring regulatory compliance expertise and established customer trust that crypto-native companies often lack.”
Some crypto enthusiasts might view bank-issued stablecoins with skepticism. After all, decentralization – freedom from traditional financial institutions – was a founding principle of Bitcoin. But others see this development as validation that blockchain technology offers real benefits beyond speculation.
ING’s push into stablecoins follows similar moves by other financial institutions. JPMorgan created JPM Coin for institutional payments, while Signature Bank launched Signet before its collapse in 2023. What makes the ING project different is its apparent focus on collaboration between multiple banks.
This approach could potentially create a more widely accepted digital currency. By pooling resources and customer bases, the banking consortium might achieve faster adoption than single-bank efforts have managed so far.
For the average person, these developments might soon mean more options for sending money internationally or making purchases online. If bank-issued stablecoins gain traction, we could see them integrated into familiar banking apps, making the technology accessible without requiring crypto expertise.
The project’s success will depend on regulatory approval, technological execution, and customer adoption. Banking institutions move cautiously, especially with new technology, so don’t expect the ING stablecoin to launch immediately. Industry observers anticipate more details in the coming months as the consortium formalizes its plans.
What’s clear is that the line between traditional banking and cryptocurrency continues to blur. As major financial institutions like ING embrace blockchain technology, we move
