EddieJayonCrypto
30 May 25
Banco Santander is considering launching fiat-backed stablecoins pegged to the US dollar and euro, aiming to expand its crypto offerings to retail clients through its digital subsidiary, Openbank, which has applied for licenses under the EU's Markets in Crypto-Assets (MiCA) regulation. This move ref...
Banco Santander is exploring the issuance of fiat-backed stablecoins pegged to the US dollar and euro, aiming to expand its crypto offerings for retail clients through its digital subsidiary, Openbank, which has applied for licenses under the EU's Markets in Crypto-Assets (MiCA) regulation.This move aligns with a broader trend among major global banks, such as JPMorgan and Citigroup, engaging with regulated digital assets amid favorable regulatory developments.However, the European Central Bank (ECB) has expressed concerns that dollar-pegged stablecoins could threaten the euro’s dominance and financial stability within the EU, calling for stricter regulation and revisions to the MiCA framework. ECB President Christine Lagarde warns that these stablecoins might divert European capital towards US assets, destabilizing EU banks and financial markets.Conversely, the European Commission maintains that current MiCA regulations are sufficient to manage stablecoin risks, emphasizing that regulatory authorities have adequate powers to intervene if necessary.Santander’s crypto initiatives highlight the increasing acceptance of digital assets in traditional finance and may set important precedents for other institutions as they adapt to evolving regulatory landscapes surrounding cryptocurrencies and stablecoins.