Santander Considers Launching Euro And Dollar Stablecoins For Clients

HomeNews* Banco Santander is considering launching euro and U.S. dollar stablecoins or offering third-party stablecoins to its customers.

• The bank’s digital unit, Openbank, has applied for a European cryptocurrency license under new Mica regulations.
• If Santander moves forward, it will become the fourth global systemically important bank to work on stablecoins.
• Global banks including Societe Generale, Deutsche Bank, and Standard Chartered are already involved in similar stablecoin initiatives.
• Stablecoin use is expanding from cryptocurrency trades to mainstream cross-border payments and is supported by recent U.S. policy decisions. Banco Santander is exploring the potential launch of both euro and U.S. dollar stablecoins, according to sources cited in Bloomberg. The bank is also reviewing the possibility of providing clients with access to stablecoins issued by other companies. This is part of the bank’s broader efforts to expand its presence in the digital assets market.

• Advertisement - The digital arm of Santander, Openbank, has reportedly applied for a European cryptocurrency license as required under the new Mica regulations, aiming to allow retail customers to access digital asset products in Europe. These moves bring Santander into line with other major international banks that are developing or backing stablecoin projects.

Societe Generale’s FORGE unit was the first among major banks to issue a euro stablecoin in 2023. Deutsche Bank works with ALLUnity, a stablecoin project set for release this year, pending regulatory approvals. Standard Chartered participates in a Hong Kong-based stablecoin joint venture. If Santander confirms these plans, it would be the fourth global systemically important bank to join this sector.

Santander also has stakes beyond its own projects. The bank is a shareholder in The Clearing House, which, according to The Wall Street Journal, is involved in discussions about a possible joint stablecoin effort by major U.S. banks. This could involve other significant institutions, such as Bank of America, Barclays, BMO, BNY Mellon, Citi, HSBC, JP Morgan, TD Bank, and Wells Fargo.

Research shows that over 20 additional banks have joined or piloted stablecoin projects in recent years. Stablecoins, which are cryptocurrencies pegged to assets like the U.S. dollar or euro, were previously used mainly for settling digital currency transactions or in countries with unstable national currencies. Now, their infrastructure is developing to support broader uses, including routine international payments.

The topic gained momentum after the United States government, under President Trump, issued an executive order giving priority to stablecoins. The administration’s stated goal is that wider adoption will raise demand for U.S. Treasury bonds, which can help lower borrowing costs for the government.

Santander has a history of early adoption in blockchain and digital finance. The bank previously invested in Ripple and used its technology for certain payment services. Santander was also among the first to issue a digital bond on the Ethereum blockchain in 2019 and later worked with Societe Generale FORGE and Goldman Sachs on a digital bond for the European Investment Bank. Its latest involvement includes supporting Fxality, a blockchain-based settlement network for financial institutions.

• Advertisement - Meanwhile, banks’ adoption of stablecoins continues to accelerate. Industry observers expect the trend to grow as regulations develop and more banks enter the market.

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