EU FinTech Horizons Summit: Stablecoins at the core of Europe’s Digital Finance Agenda

A strategic moment for Luxembourg’s financial centre

Opening the event, Arnaud Clément, Head of Payments and Innovation at the ABBL, highlighted why this topic is both timely and strategically important for Luxembourg.
With the country advancing in the implementation of new EU rules on crypto-assets, institutions now benefit from a clear and forward-looking regulatory framework. This stability, he noted, creates the conditions for banks, payment institutions and market infrastructures to explore tokenised forms of money “with confidence and responsibility,” in line with Europe’s high standards of stability, transparency and consumer protection.

Stablecoins, he emphasised, stand at the crossroads of monetary policy, liquidity management, payments, risk frameworks and international competitiveness. As interest grows among ABBL members, strengthening collective understanding and establishing a consistent vocabulary has become an essential component of the banking community’s strategic preparation.

The ABBL’s structured approach to digital assets

The discussions also built on the work of the ABBL Crypto & DLT Working Group, active since 2016 and gathering more than one hundred representatives from banks, market infrastructures, regulators and ecosystem partners.

The group’s activities are structured around three pillars:

• Advocacy, ensuring that the banking and payments community’s perspective is reflected in national and European regulatory debates;
• Community building, offering a coordinated environment to compare approaches and explore emerging practices;
• Knowledge sharing, through guidance, educational material and thematic sessions on digital assets and tokenisation.

Stablecoins were already a key focus during the group’s recent autumn session, confirming the growing strategic relevance of the topic for the sector.

Key insights from the three-panel discussion

1. Use cases: understanding the practical value of stablecoins

Moderated by Giulia Ghiandai, Global Financial Markets associate, A&O Shearman Rome, the first session explored how stablecoins complement existing payment solutions.
Panellists from SG Forge, Banking Circle and DekaBank outlined several emerging patterns:

• Stablecoins enable programmable payments, instant settlement and improved cross-border efficiency;
• Use cases include treasury optimisation, institutional settlement and tokenised asset operations;
• Developments such as JPMorgan’s JPMD token illustrate a wider industry movement towards interoperable and institution-issued digital money models.

Participants agreed that adoption is expected to accelerate as financial institutions explore more efficient settlement infrastructures.

2. Risks, technology and resilience

Moderated by Andrei Costica, Financial Services Regulatory senior associate, A&O Shearman Luxembourg, the second session addressed the risk landscape attached to stablecoin issuance and circulation.

Discussions highlighted:

• The importance of understanding governance, technical architecture and environmental impacts, as “tech neutrality” does not fully reflect real-world complexity;
• Challenges linked to secondary market circulation and the need for robust oversight mechanisms;
• The significance of cyber-resilience and operational risk frameworks, especially as DLT, automation and AI become more deeply integrated in financial processes.

A&O Shearman provided legal perspectives on MiCAR requirements and the risk-mitigation mechanisms expected from issuers.

3. Regulatory outlook: an evolving global landscape

Moderated by Ben Regnard-Weinrabe, Financial Services Regulatory partner, A&O Shearman London, the final panel brought together regulators and industry representatives for a forward-looking debate on how MiCAR will shape the market, and what comes next.

Key themes included:

• MiCAR as a solid and harmonised foundation, but one that must be considered in the context of global interoperability;
• The interplay between private stablecoins, tokenised deposits and the potential digital euro;
• Fragmentation across regions and the need to consider reciprocity frameworks or future global standards;
• Long-term prudential considerations, including monetary sovereignty and protection of token holders.

Industry panellists concluded with their priorities for future regulatory developments, ranging from enhanced cross-border clarity to support for interoperability standards.