European Banks Form Consortium to Launch Euro Stablecoin

Thirty-seven financial institutions across 15 countries have joined forces to launch a euro-pegged cryptocurrency, aiming to establish a digital payment infrastructure governed by European rules [1]. The consortium, which operates through an Amsterdam-based company called Qivalis, plans to release the stablecoin in the second half of 2026 [2].

The project includes major lenders such as BNP Paribas, ING, BBVA, ABN Amro, and Sabadell [1]. By utilizing blockchain technology, the group intends to counter the current dominance of U.S.-based stablecoins like Tether and Circle, which currently account for the vast majority of the $305 billion stablecoin market [1, 2]. Qivalis is regulated by the Dutch Central Bank and designed to be compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCAR) [2].

The move comes as traditional lenders face pressure to integrate blockchain technology into their businesses to remain competitive [1]. While the euro is the world’s second-most traded currency, euro-pegged assets currently represent only about $650 million of the total stablecoin market volume [2]. Previous attempts to gain traction in this space have seen limited success; for example, Societe Generale’s crypto arm launched a euro-pegged token in 2023 that currently has roughly 105.6 million euros in circulation [1].

Despite the industry push, the European Central Bank (ECB) remains skeptical of the benefits of stablecoins. ECB President Christine Lagarde has warned that stablecoin issuance could destabilize bank deposits and complicate the central bank’s ability to manage interest rates [3]. Policymakers have expressed concerns that these assets could lead to financial instability, redemption pressures, and weaker monetary policy transmission [3].

Instead of private stablecoins, the ECB has signaled a preference for tokenized financial infrastructure anchored directly by central bank money, such as the Eurosystem’s Pontes project for wholesale settlement [3].

The success of the Qivalis initiative will depend on whether these 37 banks can overcome regulatory caution and prove that a regulated, euro-denominated asset can attract the institutional volume currently dominated by dollar-backed tokens. Whether the project can scale within the strict confines of MiCAR remains the central question for the future of European digital payments.