Roland Lescure has called on European banks to accelerate the development of euro-pegged stablecoins and tokenized deposits, warning that the region risks falling behind in digital finance due to its reliance on US-dominated payment systems.

Speaking at a crypto conference in Paris, Lescure emphasized that the current scale of euro-denominated stablecoins remains far too small compared to their dollar-backed counterparts. He described the imbalance as “not satisfactory,” highlighting the urgent need for European financial institutions to strengthen their position in the evolving digital asset ecosystem.

Europe Seeks Greater Monetary Independence

The push reflects growing concern among European policymakers about the dominance of US dollar-linked stablecoins in global markets. Tokens such as Tether (USDT) and Circle (USDC) together account for the vast majority of stablecoin supply, which now exceeds $300 billion globally.

By contrast, euro-pegged alternatives remain relatively niche. Assets like EURC, EURS, and Société Générale’s EURCV collectively represent less than $1 billion in market capitalization, underscoring the gap between European and US digital currency adoption.

Lescure’s remarks signal a broader ambition to reinforce Europe’s financial sovereignty by fostering domestic digital payment rails. Expanding euro-based stablecoins could reduce dependence on foreign infrastructure while improving efficiency in cross-border transactions and digital commerce.

Bank-Led Initiatives Gain Momentum

The minister expressed strong support for a consortium formed by major European banks, including ING, UniCredit, and BNP Paribas, which is working to launch a euro-pegged stablecoin in the second half of 2026. He described the initiative as a step in the right direction and encouraged further collaboration across the banking sector.

In addition to stablecoins, Lescure urged banks to explore tokenized deposits. These instruments are seen as a way to combine the stability of regulated banking with the efficiency of distributed ledger technology.

Tokenized deposits could enable faster settlement, programmable payments, and improved liquidity management, making them attractive for both financial institutions and corporate users.

Demand Signals Mixed but Growing

While some research suggests limited current demand among European banks, other data points to increasing adoption of stablecoins globally. Surveys indicate that a growing share of individuals are holding or planning to acquire stablecoins, often using them for payments, savings, or as a bridge between traditional and digital assets.

At the same time, improvements in blockchain-based foreign exchange pricing are narrowing the gap with traditional banking systems. In several corridors, stablecoin-based transactions are approaching parity with interbank FX rates, suggesting that the technology is becoming increasingly competitive.

A Strategic Moment for Europe

Lescure’s call comes at a pivotal moment as regulatory clarity improves across the European Union and financial institutions explore new digital asset strategies. The development of euro-denominated stablecoins and tokenized deposits could play a key role in shaping the region’s financial future.

As competition intensifies globally, Europe’s ability to scale its own digital currency ecosystem may determine whether it remains a key player in the next generation of financial infrastructure.

DeFi & FinTech, Markets & Trading, News, Regulation & Policy

Payward, the parent firm of Kraken, has agreed to acquire Bitnomial in a deal valued at up to $550 million, marking a major step in its expansion into the regulated US derivatives market.

The transaction, which includes a mix of cash and stock, values Payward at approximately $20 billion and is expected to close in the first half of 2026, pending approval from the Commodity Futures Trading Commission. Once completed, the acquisition will provide Payward with a fully licensed infrastructure to operate crypto derivatives in the United States.

A Strategic Bet on Regulated Infrastructure

Bitnomial, based in Chicago, holds a rare combination of regulatory approvals that allow it to operate a complete derivatives stack. These include licenses as a designated contract market, a derivatives clearing organization, and a futures commission merchant. Securing these permissions independently can take years, making Bitnomial an attractive acquisition target.

Founder and CEO Luke Hoersten highlighted the firm’s history of innovation in the US crypto derivatives space. Bitnomial has been among the first to introduce regulated perpetual futures, enable crypto-native settlement, and list products such as XRP and Solana futures under regulatory oversight.

For Payward, acquiring this infrastructure accelerates its ability to offer compliant derivatives products in one of the world’s most tightly regulated markets. The move reflects a broader industry trend toward regulatory alignment as firms seek long-term growth and institutional participation.

Expanding Kraken’s Multi-Asset Strategy

The acquisition also strengthens Kraken’s push beyond traditional crypto trading into a broader multi-asset platform. According to co-CEO Arjun Sethi, the company plans to leverage Bitnomial’s licenses to roll out new US-based offerings, including spot margin trading, perpetual futures, and options under regulatory supervision.

Payward is also building out a business-to-business strategy through its services division, aiming to provide banks, brokerages, and fintech companies with access to crypto and derivatives markets through a single integration. This includes services such as tokenized equities, staking, and fiat on- and off-ramps.

The deal follows a series of recent acquisitions by Kraken as it diversifies its offerings. These include the purchase of a traditional finance derivatives platform, NinjaTrader, and investments in tokenization infrastructure, signaling a convergence between crypto-native and traditional financial systems.

Positioning for Global Growth

Payward already operates regulated derivatives businesses in Europe and the United Kingdom, and the Bitnomial acquisition adds a critical US component to its global footprint. The timing also aligns with growing institutional interest in digital asset derivatives, which are seen as key tools for hedging and price discovery.

The move comes shortly after Deutsche Börse disclosed a $200 million purchase of Payward shares, underscoring confidence from traditional financial players. Although the stake was acquired through a secondary transaction, it reflects increasing crossover between legacy finance and crypto markets.

As competition intensifies, securing regulatory approvals and infrastructure is becoming a defining factor for major players. With this acquisition, Payward positions itself to compete more directly in the evolving global derivatives landscape while laying the groundwork for a potential future public listing.

DeFi & FinTech, News

The UK’s financial regulator, the Financial Conduct Authority, has launched a new consultation as part of its broader roadmap to regulate digital assets ahead of a full framework expected in 2027. The initiative aims to refine how specific crypto activities should fall within the country’s regulatory perimeter.

The consultation invites input from industry participants, policymakers, academics, and the public on how core activities such as stablecoin issuance, trading platforms, custody services, and staking should be treated under future rules.

This latest step reflects the FCA’s effort to move from high-level planning toward detailed rule design before the regime becomes fully operational.

Key Areas Under Review: Stablecoins, Custody, and Staking

A major focus of the consultation is determining how different crypto functions should be classified and regulated. Stablecoin issuance is one of the most closely watched areas, given its potential role in payments and settlement systems.

Custody services are also under scrutiny, as regulators seek to ensure that user assets are protected against operational failures, cyber risks, and misuse. Similarly, staking is being reviewed to understand how rewards-based mechanisms fit within existing financial frameworks.

Crypto trading platforms remain another priority, particularly in relation to market integrity, transparency, and consumer protection standards.

The FCA has emphasized that defining the “regulatory perimeter” is essential to ensuring firms know which activities require authorization and which do not.

Timeline Toward Full Crypto Regulation in the UK

The consultation closes on June 3, 2026, with crypto firms expected to begin applying for authorization from September 30, 2026. The full regulatory regime is scheduled to take effect in October 2027.

The roadmap follows earlier legislative steps, including the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, which formally brought crypto activities under FCA oversight.

The UK approach has been deliberately phased, with earlier rules focusing on anti-money laundering requirements, restrictions on retail crypto derivatives, and financial promotions guidelines for digital assets.

According to the FCA, further policy statements will be released in the summer of 2026, followed by final perimeter guidance in the autumn.

Gradual but Structured Regulatory Approach

The UK has positioned its crypto regulatory strategy as a balance between innovation and financial stability. The phased rollout is intended to give firms time to adjust while maintaining oversight of emerging risks.

Since 2020, crypto-related anti-money laundering rules have been in place, followed by a ban on retail crypto derivatives in 2021 and expanded marketing restrictions in 2023. Each stage has incrementally tightened oversight without fully restricting industry development.

However, opinions remain divided on whether the UK is moving quickly enough. Some legal experts argue the country is lagging behind other jurisdictions, particularly within Europe, where regulatory frameworks are already more advanced.

Others believe the FCA’s structured roadmap offers clarity and predictability that can ultimately benefit long-term industry growth.

Industry Response: Mixed Views on Progress

Industry reactions to the consultation have been mixed but largely engaged. Some stakeholders view the process as slow but necessary, emphasizing the importance of regulatory certainty before large-scale institutional adoption.

Others see the FCA’s approach as constructive and systematic. By publishing consultations in stages, firms are given opportunities to adapt infrastructure and compliance systems ahead of enforcement.

As the UK moves closer to implementing its full crypto regime in 2027, the consultation marks another important step in shaping how digital assets will operate within one of the world’s key financial centers.

DeFi & FinTech, Markets & Trading, News, Regulation & Policy