Luxembourg-based financial institution Banking Circle has stepped deeper into the digital asset space with the launch of regulated stablecoin settlement services. The move follows its approval as a Crypto Asset Service Provider (CASP) by Luxembourg’s financial regulator on April 15, marking a significant milestone in its expansion strategy.
Expanding stablecoin capabilities
The new offering enables institutional clients to seamlessly convert between fiat currencies and stablecoins, strengthening the bank’s position in Europe’s rapidly evolving digital payments landscape. With over 750 financial institutions, payment companies, and marketplaces already connected to its infrastructure, Banking Circle processes more than €1.5 trillion annually, giving it a strong foundation to scale these services.
The rollout includes support for major stablecoins such as USD Coin issued by Circle, USDG from Paxos, and Banking Circle’s own euro-backed token EURI. This builds on its earlier entry into the space with the launch of EURI in August 2024.
According to chief digital asset officer Kirit Bhatia, stablecoins represent a “natural extension” of the bank’s infrastructure, offering faster settlement times, reduced costs, and improved operational efficiency for cross-border transactions.
Rising competition under MiCA framework
Banking Circle’s expansion comes as Europe’s stablecoin market grows increasingly competitive under the Markets in Crypto-Assets Regulation (MiCA). Traditional banks and crypto-native firms are racing to establish compliant digital payment systems.
French banking giant Société Générale, through its digital asset arm, has already launched euro and dollar stablecoins, while Sygnum has integrated similar assets into its institutional platform. Meanwhile, a consortium including ING, UniCredit, and CaixaBank is preparing to introduce a MiCA-compliant euro stablecoin project known as Qivalis, expected to launch in 2026.
Crypto-native players are also intensifying competition. Coinbase recently partnered with Nium to enable cross-border settlements using USDC, highlighting how both traditional and digital-first firms are converging in the same market.
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