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- Banking Circle expands regulated stablecoin settlement services across European financial markets
- Institutional demand rises as banks integrate stablecoins for faster payments
- European banks and crypto firms compete to dominate regulated stablecoin infrastructure
Stablecoin payment services have been extended across Europe by Banking Circle following approval from regulators in Luxembourg, making it possible for institutional users to transfer value between fiat currencies and cryptocurrencies in a regulated environment. In addition, this move establishes the bank as a key player in the European digital payment market, as it now supports USDC (Circle’s issuer) and USDG (Paxos) stablecoins alongside its existing euro-backed stablecoin EURI.
Furthermore, the bank also has a large global payment network, connecting more than 750 financial institutions and marketplaces, which handle over 1.5 trillion euros each year across multiple payment methods. As a result, the integration of stablecoins into this vast network is a response to the growing institutional need for faster international payments, efficient liquidity management and the elimination of inefficiencies in the conventional financial system.
Chief digital asset officer Kirit Bhatia notes that stablecoins are a natural fit with existing payment systems because they facilitate faster value transfers, and reduce friction without needing to replace existing banking systems.
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European Banks Accelerate Regulated Stablecoin Expansion
In Europe, banks are building on stablecoin projects under the Markets in Crypto Assets (MiCA) regulations, which offer legal certainty and foster the adoption of compliant digital asset services by banks and fintech operators.
Simultaneously, Société Générale has continued to execute its blockchain strategy with the launch of its EURCV stablecoin and increasing its connectivity across digital networks, in addition to providing access via regulated wallet platforms. Similarly, Sygnum has added the EURCV to its platform to serve institutional and partner banks looking for secure and compliant settlement services for digital assets.
Bank Consortium and Crypto Firms Expand Global Settlement Reach
Meanwhile, a consortium of ING, UniCredit and CaixaBank is developing a joint euro stablecoin to be launched by 2026 and with Fireblocks as its infrastructure partner. And, in the meantime, crypto firms are also working to improve global settlement options, with Coinbase partnering with Nium to enable USDC-backed remittances across more than 190 countries and offer settlement options.
Similarly, Circle has also announced a payments network, targeting financial institutions seeking effective settlement solutions using blockchain, also driving competition in the banking and crypto markets. The growth of Banking Circle suggests stablecoins are growing in regulated banking markets, as European banks increasingly adopt these technologies to streamline payment processing speed, cost and meet evolving international payment demands.
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