European banks unite to counter US stablecoin lead

As Europe’s Ryder Cup golfers bask in the glory of victory over their American rivals on US soil at the weekend, nine leading European banks have announced plans to launch a euro-denominated stablecoin. The initiative is aiming to provide a regulated digital payment instrument that could serve as a standard across the region.

The initiative brings together ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank and Raiffeisen Bank International. The group has established a new company in the Netherlands, which intends to secure licensing as an e-money institution under the supervision of the Dutch Central Bank.

The stablecoin is designed to comply with the EU’s Markets in Crypto-Assets Regulation (MiCAR) and is expected to be issued in the second half of 2026. By using blockchain technology, the project aims to deliver near-instant, low-cost payments and settlements. According to the banks, potential applications range from cross-border transactions and programmable payments to supply chain management and digital asset settlement.

The consortium says its objective is to create a European alternative to the US-dominated stablecoin market, strengthening Europe’s strategic autonomy in payments. Individual banks will be able to develop their own value-added services around the coin, such as digital wallets and custody solutions.

Flaminia Lucia Franca, Head of Transaction Banking at Danske Bank, said the move highlights how collaboration can help unlock efficiencies for businesses and end-users. “Digital assets have the power to transform the financial landscape - not just by introducing new forms of money, but by unlocking meaningful efficiencies and savings for both the financial sector and customers,” she commented. “At Danske Bank, we believe this evolution must be driven by collaboration and shared standards across the industry.”

The group has signalled that it is open to additional members joining the project. A chief executive is expected to be appointed in the near future, subject to regulatory approval.

 

Swift unveils blockchain ledger to support global cross-border payments

Swift has announced plans to add a blockchain-based shared ledger to its infrastructure, in what it describes as a pivotal step toward enabling instant, always-on cross-border transactions at global scale. The development was unveiled at the Sibos conference in Frankfurt, where Swift set out its vision for extending its financial communication role into the digital era. The project will begin with a conceptual prototype designed by Consensys, developed in collaboration with more than 30 financial institutions worldwide. The initial use case is focused on real-time 24/7 cross-border payments, with Swift aiming to complete the prototype during the first phase and then move into further stages of development with industry partners.

The ledger is envisaged as a secure, real-time log of transactions between financial institutions. It would record, sequence and validate payments, while also enforcing rules through smart contracts. Swift said it will be designed for interoperability with both existing and emerging networks, combining the transparency of distributed ledger technology (DLT) with the trust, resilience and compliance standards already associated with its global network.

Javier Pérez-Tasso, Swift’s chief executive, told Sibos delegates on the first day of the conference in Frankfurt: “We provide powerful and effective rails today and are moving at a rapid pace with our community to create the infrastructure stack of the future. Through this initial ledger concept we are paving the way for financial institutions to take the payments experience to the next level with Swift’s proven and trusted platform at the centre of the industry’s digital transformation.”

Financial institutions from 16 countries are providing input on the design, and Swift said it will seek wider adoption from its community once the prototype and proof of concept are complete. The organisation stressed that it will not define which tokens are exchanged on the ledger, leaving that to commercial and central banks, but will ensure the infrastructure can support regulated tokenised value across digital ecosystems.

In parallel, Swift is also developing tools to enable orchestration between different systems, supporting interoperability between DLT-based networks and existing fiat rails. These client solutions aim to synchronise transactions across private and public networks and to broaden the range of use cases that can be supported.

The ledger builds on more than two years of Swift’s digital asset trials and forms part of its broader strategy to upgrade payments capabilities. Alongside the new infrastructure, Swift is pursuing improvements to the customer experience over its existing rails. Last week, it announced the development of new scheme rules intended to ensure faster and more predictable transfers for consumers and small businesses sending money internationally.

Swift said the twin tracks of upgrading fiat payment rails while preparing the industry for digital finance are designed to ensure its network remains central to how value moves globally. With the addition of a shared ledger, the organisation is positioning itself to play a key role in the next stage of payments transformation, working with banks, central banks and technology providers to deliver scalable digital finance infrastructure across more than 200 countries and territories.

 

AI spending boosts US economy but official data undercounts impact

Artificial intelligence has added significantly to US economic growth since 2022, though official statistics appear to capture only a fraction of the effect, according to Goldman Sachs Research (GSR). Revenue at US firms providing AI infrastructure has risen by around US$400bn over the past three years. Roughly half of this came from margin expansion, largely reflecting price increases rather than higher volumes, or from foreign sales of equipment, much of which was produced outside the US. Adjusting for these factors, GSR estimates that about US$220bn reflects genuine domestic demand.

Of that total, about US$60bn represents imports of semiconductor products and computer equipment. The net boost to real US GDP is therefore estimated at US$160bn, equivalent to a 0.7% gain since 2022, or 0.3 percentage points at an annualised rate.

The figures diverge sharply from official GDP data compiled by the Bureau of Economic Analysis (BEA). Current methodology treats semiconductors as intermediate inputs, which only add to final demand when incorporated into consumer products such as laptops. High-performance chips used to train AI models are typically excluded from GDP calculations, despite being a form of intangible investment. As a result, the rise in imports is subtracted from GDP, while the corresponding investment in AI capacity is not fully recorded, producing a negative impact in the official data.

GSR analysts estimate that AI-related semiconductor demand worth US$42bn should be counted as investment, offset by higher imports, and that about US$75bn of spending on cloud services to develop AI models and enterprise solutions has gone unmeasured. Taking these into account, the researchers conclude that AI has boosted “true” real GDP by about US$160bn, compared with just US$45bn (0.2%) reflected in the official statistics.

The findings highlight the challenges of measuring the economic impact of emerging technologies, particularly when much of the value lies in intangible assets such as data and algorithms. They also suggest that AI is already playing a more substantial role in US growth than headline figures imply, a factor that could become increasingly relevant for policymakers and businesses as investment in the sector accelerates.

 

US banks’ payments projects stalling amid expertise gaps

Two-thirds of US banks are struggling to keep up with rapid changes in the payments industry, with many projects delayed or scaled back due to staffing shortages, according to new research from RedCompass Labs. The survey of 300 senior payments professionals found that 67% of banks admit they are falling behind industry developments, while more than half (54%) have scaled down or delayed projects because of a lack of expertise. Almost half (43%) said delayed initiatives are already leading to payments outages.

The research highlights four systemic challenges slowing progress: the speed of industry change, difficulties managing vendors, the growing gap between large and small institutions, and a shortage of payments talent. The findings come as banks face mounting pressure from ISO 20022 migration deadlines, the rollout of instant payments, rising cross-border volumes, and new open banking requirements.

The report shows that most payments projects fail to meet initial objectives. Over four in five projects run over budget (87%), are delayed (83%) or are not delivered to the original specification (83%). Respondents cited regulatory pressure (41%), legacy systems (36%) and budget constraints (35%) as the biggest barriers to delivery.

The financial and operational impact of failure is significant. RedCompass estimates that each troubled project delivers an average loss of almost US$500,000. Respondents said delays disrupt other programmes (47%), reduce customer satisfaction (47%) and damage reputations (38%). Talent shortages are central to the challenge. More than half of banks (55%) delayed or scaled down projects in the past year due to expertise gaps, while nearly two-thirds (63%) now plan to work with specialist consultancies to support payments innovation and AI adoption.

AI is emerging as a key tool to address these gaps. Three-quarters of respondents believe AI agents could help offset skills shortages, with 53% already deploying AI in payments operations and a further 29% planning to do so in the next 12 months.

The survey also highlights uneven adoption. Larger institutions remain more cautious: just over half believe AI can fill expertise gaps, compared with higher adoption among mid-sized peers. Meanwhile, 44% of big banks are already using AI, underscoring both demand and caution in the sector.

 

Survey highlights $235bn tokenisation opportunity as TradFi and DeFi converge

Global asset managers and decentralised finance (DeFi) providers see a combined US$235bn opportunity in tokenised funds over the next five years, according to research commissioned by Calastone. The survey, conducted by ValueExchange, found that tokenised fund assets under management are projected to expand from US$4bn in 2024 to US$235bn by 2029, a 58-fold increase. Money market funds (MMFs) and private asset funds are viewed as the most promising candidates for tokenisation.

Nearly a third of asset managers (28%) plan to distribute tokenised funds by 2030, more than double the 13% who expect to do so by 2026. Among those who have already launched tokenised funds, almost two-thirds (65%) reported advantages compared with traditional models. Benefits cited include greater automation, enhanced liquidity, and improved access to new categories of investors.

The findings suggest that asset managers are increasingly looking to tokenised distribution as their fastest route into digital assets. Respondents indicated a strong preference for working with technology partners and digital platforms to reach the market, rather than building proprietary capabilities or approaching investors directly.

On the DeFi side, demand for tokenised MMFs is growing rapidly. Four in five platforms (80%) said such products could improve treasury management, while half expect their tokenised holdings to rise by at least 25% by 2030. Three-quarters believe tokenised MMFs could help them retain client assets, with 40% expecting them to attract new investors.

Despite operating on decentralised rails, most DeFi platforms still rely on traditional MMFs or bank deposits for cash management. The research suggests investors increasingly want access to these products within the same venues they already use to trade digital assets. Tokenised MMFs, combining traditional yield and liquidity with blockchain-native features such as on-chain settlement and stablecoin integration, appear well placed to bridge this gap.

 

EBA Clearing confirms VoP readiness after pan-European testing

EBA Clearing has confirmed that its Verification of Payee (VOP) service is ready to scale across Europe, following extensive volume testing with a large group of STEP2 and RT1 participants. The exercise enabled payment service providers (PSPs) to assess readiness, stress test their systems and resolve issues ahead of the 9 October compliance deadline under the EU’s Instant Payments Regulation (IPR).

The coordinated campaign brought together PSPs using both EBA Clearing’s Fraud Pattern Anomaly Detection (FPAD) VOP solution and other tools, allowing end-to-end testing of volume peaks. With the mandatory roll-out of VOP checks approaching, collaborative testing has been positioned as essential for ensuring customer safety, operational resilience and regulatory compliance from day one.

According to EBA Clearing, the exercise allowed PSPs to fine-tune systems and processes, confirming their ability to handle VOP checks rapidly and at scale. The company said the strong level of participation reflects growing adoption of FPAD VOP, which was developed in 2023 in consultation with fraud experts from across its user base.

More than 55 RT1 and STEP2 participants across 14 countries are preparing to adopt FPAD’s VOP functionality by October. These institutions connect hundreds of PSPs and account for more than 40% of traffic in STEP2 SEPA Credit Transfers and RT1 instant payments.

FPAD VOP provides a flexible set of tools designed to detect anomalies and fraud patterns at network level. Beyond VOP checks, the system offers a broad range of fraud indicators to strengthen prevention measures and improve the customer experience.

STEP2 and RT1 are EBA Clearing’s pan-European payment systems for SEPA Credit Transfers, Direct Debits and Instant Credit Transfers. Together they process millions of transactions daily and form the backbone of Europe’s retail payments infrastructure.

 

SAP Taulia and Boost look to expand virtual card automation

SAP Taulia has partnered with Boost Payment Solutions to strengthen its virtual card offering by embedding Boost’s straight-through processing (STP) technology. The move aims to reduce payment friction for suppliers and accelerate adoption of virtual cards across key markets.

Virtual cards have traditionally been delivered via secure emails, creating manual steps for suppliers that handle large transaction volumes. By integrating Boost’s multi-patented STP technology, SAP Taulia will enable suppliers to automatically accept and process card payments, eliminating manual intervention. The companies say the change will cut risk, speed up cash flow and improve days sales outstanding (DSO).

The collaboration allows SAP Taulia’s customers and their suppliers to process payments end-to-end through a fully automated workflow, from buyer card origination to supplier settlement. The partnership also extends reporting capabilities, giving businesses enhanced visibility and analytics around their payments activity.

The rollout will begin in the US, UK, EU and UAE, with additional regions to follow. It represents the latest step in SAP Taulia’s 2025 programme to expand its embedded virtual card capabilities through a series of partnerships with card providers and technology specialists.

For suppliers, the integration promises greater efficiency in payment acceptance and reconciliation, while buyers gain access to richer data insights and improved control over working capital. For SAP Taulia, the alliance is designed to cement its role as a leading provider of embedded working capital and payment solutions.

Boost, which has built its business around optimising commercial card acceptance, sees the partnership as a way to scale its infrastructure to a wider global customer base. The companies position the tie-up as part of a broader trend of digitising B2B payments and embedding finance directly into corporate workflows.

 

Danske Bank partners with FinanceKey to deliver real-time treasury access

Danske Bank has announced a collaboration with treasury fintech FinanceKey to provide enterprise customers with real-time access to liquidity data. The partnership aims to give CFOs and treasury teams faster, more accurate insight into cash positions, supporting better decision-making in volatile conditions. The move comes as cash and liquidity management remain a top priority for finance leaders. PwC’s 2025 Global Treasury Survey found that 65% of organisations plan to expand API use in the coming years, reflecting the shift from treasury as a back-office function to a more strategic role.

As part of the pilot, FinanceKey is integrating Danske Bank’s new Premium Account Transaction & Balance API. The tool enables instant visibility of balances and transactions across multiple accounts in a single dashboard. It is designed to automate reporting processes, streamline cash flow analysis, and provide real-time alerts.

According to Danske Bank, the goal is to embed financial services directly into customers’ existing systems rather than require separate platforms. The bank says this model will make day-to-day treasury operations smoother and more resilient, while reducing manual workloads.

FinanceKey described the project as an example of practical collaboration between banks, fintechs, and corporate users. Rather than developing in isolation, the companies worked closely with treasury teams to ensure the solution addressed operational challenges and delivered measurable efficiencies.

Danske Bank is positioning the initiative as part of a broader strategy to expand the use of premium APIs, which allow third parties to connect directly to the bank’s infrastructure. Its platform provides a single point of entry for file-based solutions, regulatory APIs, and premium services that support payables, receivables, and reporting.

The partnership also highlights growing momentum in the Nordic region around ecosystem-based innovation in financial services. By taking a platform approach and building a partner-led distribution model, Danske Bank says it aims to help corporates modernise operations, improve efficiency, and break down data silos between finance and technology.

 

Ant International first corporate to adopt HSBC’s tokenised deposit service

Ant International has become the first client to use HSBC’s Tokenised Deposit Service (TDS) in Hong Kong, marking the launch of what the bank describes as the city’s first blockchain-based settlement platform led by a financial institution. The service allows corporate clients to create digital records of fiat deposits, represented as tokens on a distributed ledger. These tokens can then be used for instant settlement of remittances and payments, offering around-the-clock access to liquidity. HSBC says the model improves efficiency, flexibility and transparency in treasury operations.

TDS is intended to reduce reliance on traditional batch processing and cut-off times by enabling continuous, real-time transfers. Each transaction is recorded on the blockchain, which can support automated reconciliation and reduce operational errors. The system also uses smart contracts to eliminate settlement risk by ensuring transactions are either completed in full or cancelled.

HSBC said the platform is designed for sectors with high demands for speed and transparency, including fintech, digital commerce and logistics. For corporates, integration with existing treasury systems will allow tokenised deposits to be programmed for specific payment triggers, supporting more sophisticated cash flow management.

The adoption by Ant International builds on a longstanding partnership between the two firms. HSBC has previously collaborated with the Ant Group subsidiary on a range of digital payments initiatives across multiple geographies. Ant described TDS as a “core product” in its relationship with the bank, citing its potential to enable real-time global treasury management.

For HSBC, the move signals a wider commitment to embedding blockchain into its core services. The bank said TDS represents the first step in a broader programme to test and scale tokenised finance solutions in partnership with its global corporate clients.

 

Deutsche Bank completes first euro blockchain payment

Deutsche Bank has executed its first euro-denominated cross-border payment using Partior’s blockchain platform, in collaboration with Singapore-based DBS. In the pilot, Deutsche Bank acted as the settlement bank while DBS served as the beneficiary, marking a milestone in the bank’s efforts to modernise cross-border payments for financial institution (FI) clients.

The transaction follows Deutsche Bank’s investment in Partior in 2024 and the finalisation of its platform agreement earlier this year. Partior, co-founded by DBS, is designed to provide real-time, secure and scalable settlement using distributed ledger technology.

The trial demonstrated interoperability between blockchain networks and traditional financial rails, with the payment executed seamlessly across different infrastructures. This capability is seen as key to ensuring blockchain-based systems can complement rather than replace existing settlement processes.

Deutsche Bank said its integration with Partior is intended to deliver practical benefits for FI clients, including faster reconciliation, lower payment failure risks and real-time confirmation since settlement occurs directly on the ledger. Improved interbank settlement efficiency could also enhance liquidity management across the industry and enable corporates to access real-time treasury management capabilities.

Patricia Sullivan, Head of Institutional Cash Management, Deutsche Bank, said: “Our integration with Partior will bring multiple benefits to our FI clients, including more efficient reconciliation processes, reduced payment failure risks and real-time confirmation since settlement occurs directly on the blockchain. Furthermore, more efficient interbank settlements mean that we can help to optimise liquidity management across the industry and, specifically, enable real-time treasury management for our clients’ underlying customers.”

 

Finloop launches instant liquidity tool with BNY support

Finloop Finance Technology has introduced CashPro, an instant liquidity management solution for retail and institutional clients in Hong Kong, supported by BNY Investments. The tool is designed to move beyond traditional T+1 processing by enabling same-day interest accrual for subscriptions and providing hourly redemption.

The launch builds on Finloop’s existing T+0 money market fund platform, which has already processed transactions worth hundreds of billions of US dollars. By integrating BNY Investments’ liquidity infrastructure, CashPro gives clients access to a broad network of money market funds alongside cash movement, transfer capabilities, and advanced data and analytics.

The service aims to improve capital flexibility and liquidity efficiency for both retail and institutional users. It will initially focus on US dollar holdings, with expansion planned into other currencies including the euro, pound, Hong Kong dollar, offshore renminbi and yen.

Finloop said the product is intended to streamline liquidity management by combining faster fund processing with richer data tools. The collaboration with BNY reflects a wider trend of global asset managers and fintech platforms working together to provide more responsive treasury solutions.

The introduction of CashPro highlights the increasing demand for real-time liquidity options as corporates and investors seek to optimise cash flow, reduce operational frictions and respond more effectively to changing market conditions.

 

Citi expands cross-border payments into digital wallets with Dandelion tie-up

Citi has partnered with Dandelion, part of Euronet Worldwide, to expand the reach of its cross-border payments offering by enabling near-instant transfers directly into digital wallets. The collaboration integrates Citi’s WorldLink Payment Services platform with Dandelion’s wallet network, creating new channels for institutional, corporate and public sector clients.

The service will initially cover the Philippines, Indonesia, Bangladesh and Colombia, with further markets planned. Payments will be available almost around the clock and delivered in full value, reflecting growing demand for faster and more cost-efficient business-to-consumer transfers in emerging digital economies.

For financial institutions, the initiative supports remittance flows into wallets, while corporates and government agencies can use the capability for payroll, reimbursements, social benefits, customer refunds and gig-economy payments.

The move builds on Citi’s established payments infrastructure, which processes over 11 million instant payments daily and handled nearly US$380bn in cross-border transaction volumes in 2024. WorldLink already supports transfers in more than 135 currencies via multiple rails, including traditional wires, ACH and Citi’s proprietary instant payments network. The new wallet functionality adds to existing payout methods into bank accounts, cards and other digital destinations.

Dandelion brings wallet connectivity across 63 countries, which Citi expects will extend the reach of its cross-border network significantly. By combining Dandelion’s footprint with Citi’s infrastructure, clients will gain broader access to beneficiaries who rely primarily on digital wallets for everyday transactions.

 

ADNIC partners with Allianz Trade to expand credit insurance in UAE

Abu Dhabi National Insurance Company (ADNIC) has agreed a long-term partnership with Allianz Trade to expand access to trade credit insurance solutions in the UAE. The collaboration is intended to help companies safeguard cash flow, protect against customer defaults and pursue growth in both domestic and international markets.

Under the agreement, ADNIC will broaden its portfolio by offering trade credit insurance products tailored to the needs of UAE businesses. The solutions are designed to mitigate non-payment risks, improve financing opportunities and support expansion into new markets.

The partnership will draw on Allianz Trade’s expertise in risk assessment and underwriting, as well as its regional database that tracks more than 40,000 businesses across Gulf Cooperation Council industries. This access to real-time credit intelligence is expected to give ADNIC clients stronger visibility of counterparties and market conditions.

Trade credit insurance is gaining traction as businesses seek greater financial resilience in a volatile economic environment. By providing protection against defaults and enhancing working capital management, the product aims to strengthen business continuity and competitiveness across sectors.

The service will be available to eligible UAE companies, positioning credit insurance as a tool to support sustainable growth and responsible credit practices.