The Netherlands' ING Bank is collaborating with traditional financial institutions to develop a new type of stablecoin.

BlockBeats News, April 22nd, According to two sources familiar with the matter, Dutch bank ING is reportedly developing a stablecoin, aiming to seize the market opportunity using the new European cryptocurrency regulatory framework. The two sources indicated that ING's stablecoin project may take the form of a bank consortium, collaborating with other financial institutions and crypto service providers.

The EU's "Markets in Crypto-Assets Regulation" (MiCA) requires stablecoin issuers in member states to hold an authorization license and prioritize supporting Euro-denominated stablecoins (most existing stablecoins are pegged to the US Dollar). According to a report from JPMorgan earlier this year, MiCA's requirement for issuers to hold sufficient reserves in European banks gives Circle's Euro stablecoin, EURC, a more compliant advantage compared to its main competitor Tether. The entry of traditional banks like ING implies that Société Générale will face competition— the bank was the first to launch a bank-backed stablecoin through its innovation department SG Forge.