Key Takeaways
Luxembourg-based Banking Circle has launched a stablecoin settlement service for its 750+ institutional clients after receiving a CASP license, entering a European market that has seen compliant token volumes grow over 1,200% under MiCA.
"Stablecoins have fast evolved from a peripheral innovation into core infrastructure for cross-border settlement," Laust Bertelsen, CEO of Banking Circle, said. "We are proud to be at the forefront of bringing these capabilities to market within a robust regulatory framework.”
The bank, which processes over €1.5 trillion annually, will now compete with established players like Société Générale's EURCV and Circle's EURC, which holds over 50 percent of the euro stablecoin market share. The move follows Europe's Markets in Crypto-Assets (MiCA) regulation, which has provided clear rules for stablecoin issuers, classifying them as E-Money Tokens (EMTs).
The entry of another regulated bank intensifies the race to build the dominant euro stablecoin for institutional settlement, a market segment also targeted by Qivalis. The consortium of 12 banks, including BNP Paribas, BBVA, and UniCredit, plans to launch its own token in the second half of 2026.
Kirit Bhatia, Chief Digital Asset Officer at Banking Circle, said the new service is a "natural extension" of the bank's existing infrastructure, which is designed to reduce cost and complexity in payments. The bank's CASP approval comes from Luxembourg's Commission de Surveillance du Secteur Financier (CSSF).
Banking Circle enters a competitive field where both crypto-native firms and traditional financial giants are vying for dominance. The MiCA framework has acted as a major catalyst, forcing the exit of non-compliant tokens while attracting institutional capital to regulated alternatives. This has led to a surge in transaction volume for compliant tokens like Circle’s EURC, which has grown over 1,100 percent.
Société Générale's-FORGE division has been an early mover, launching its EURCV stablecoin in April 2023 and recently expanding it to the Stellar and XRP Ledger networks to target cross-border payments. Meanwhile, crypto infrastructure firms are also competing, with Circle launching its Circle Payments Network and Coinbase partnering with Nium for USDC-based cross-border settlement.
The market consolidation under MiCA is expected to continue, with regulated EMTs already accounting for approximately 25 percent of all stablecoin transaction volume in the EU. While the European market still lags the $300 billion U.S. dollar-pegged stablecoin market, its rapid, regulation-driven growth signals a significant shift in the digital asset ecosystem.
This article is for informational purposes only and does not constitute investment advice.
