ING Partners with TradFi and Crypto Firms to Develop Euro-Backed Stablecoin

Dutch bank ING is reportedly collaborating with other traditional financial institutions and cryptocurrency firms to develop a new stablecoin. This initiative aligns with ING's ongoing efforts to integrate blockchain technology into its operations, as evidenced by its involvement in projects like komgo SA and Contour, which aim to digitalize trade finance processes.

The proposed stablecoin is expected to be pegged to the euro, positioning it as a potential competitor to existing stablecoins like Tether (USDT) and USD Coin (USDC), which are predominantly dollar-denominated. This move reflects a broader trend among traditional financial institutions to explore the stablecoin market, particularly following Tether's decision to discontinue its EURt stablecoin.

ING's participation in this project underscores its commitment to advancing digital asset solutions. The bank has previously developed cryptocurrency custody technology and has been active in blockchain-related initiatives, including the creation of Pyctor, a digital asset tool sold to GMEX, and its involvement in the R3 consortium to evaluate blockchain applications in global finance.

This strategic move by ING and its partners could significantly influence the evolution of stablecoins, offering a regulated and euro-backed alternative in the digital asset landscape.