Dutch Bank ING (ING) Is Developing a Stablecoin

Dutch bank ING Groep (ING) is reported to be developing a stablecoin for the European market.

The lender based in Amsterdam is apparently trying to take advantage of Europe’s new cryptocurrency regulations that came into force last year. The new stablecoin could potentially involve other European banks and crypto service providers, although no official announcements have been made.

Europe’s “Markets in Crypto Assets” policy, known as “MiCA,” requires stablecoin issuers across the European Union (EU) to hold an authorization license, which ING is seeking. Details of the stablecoin are limited right now. However, it is reported that it will be pegged to the Euro currency.

New Competition

A stablecoin is a cryptocurrency whose value is pegged to another asset, typically the price of gold or the U.S. dollar. MiCA’s stablecoin rules require issuers to maintain significant reserves in banks based in Europe. ING will not be the first European bank to issue a stablecoin.

French lender Société Générale was the first European bank to offer a stablecoin through its SG Forge innovation division. With its stablecoin, ING will also compete for investors against the world’s two largest stablecoins, Circle’s USD Coin (USDC) and Tether’s USDT (USDT) digital assets.

The stock of ING, which trades on the New York Stock Exchange (NYSE), has risen 23% this year.

Is ING Stock a Buy?

Not enough Wall Street analysts follow ING stock. So, we’ll look at the company’s three-month share price performance. As one can see in the chart below, ING stock has gained 14% in the last 12 weeks.