A coalition of 12 major European banks is pressing ahead with plans to issue a euro-denominated stablecoin in one of the continent’s most coordinated private-sector efforts yet to challenge the dominance of dollar-backed digital tokens.
The initiative, known as Qivalis, includes CaixaBank, BNP Paribas, ING, UniCredit, and BBVA, alongside Danske Bank, DZ Bank, SEB, KBC, Raiffeisen Bank International, DekaBank, and Banca Sella. According to reporting by Spanish outlet CincoDias, the consortium is targeting a commercial launch in the second half of 2026.
The proposed token will be pegged 1:1 to the euro, with at least 40% of reserves held in bank deposits, with the remainder held in high-quality, short-term eurozone sovereign bonds, per the report. The structure is designed to reduce concentration risk while maintaining full backing and 24/7 redemption for holders.
Jan Sell, former head of Coinbase Germany and now CEO of Qivalis, told CincoDías that the group aims to offer a “regulated, domestic alternative to U.S. dollar-denominated stablecoins” within the European Union, while also positioning the token for global use cases such as real-time cross-border business payments.
Distribution and liquidity
Distribution is central to that ambition. Qivalis is in advanced discussions with cryptocurrency exchanges, market makers, and liquidity providers to ensure the stablecoin is listed and tradable from day one.
Member banks will also distribute the token through their own channels. The consortium is prioritizing partners that comply with the EU’s Markets in Crypto-Assets regulation, known as MiCA, which established licensing, reserve, and transparency requirements for stablecoin issuers operating in the bloc.
MiCA, implemented in stages since 2024, imposes strict capital, governance, and reserve standards on issuers of so-called “asset-referenced tokens” and “e-money tokens.”
The consortium formally launched in December and has grown since its initial announcement in September. BBVA joined in early February, shelving its own independent euro stablecoin project in favor of the collective effort — a move the bank attributed to the benefits of scale and interoperability over fragmented, single-bank solutions.
Greenback stablecoin dominance
Meanwhile, euro-backed stablecoins remain a small corner of the market. Over 95% of global stablecoin supply is pegged to the U.S. dollar, according to The Block’s data. European banks see room to compete, particularly in cross-border payments where traditional infrastructure can be slow and costly.
Qivalis’ advance also comes amid a wider surge of institutional interest in stablecoins.
Barclays is reportedly exploring blockchain settlement tools as banks prepare for stablecoin growth. In the U.K., the Financial Conduct Authority has selected firms, including Revolut, to test stablecoin use cases in a regulatory sandbox, while U.S. lawmakers are revisiting rules around stablecoin yields amid concerns over deposit flight from traditional banks.
Stablecoins are also increasingly linked to emerging digital commerce models. Stripe’s co-founder recently predicted a “torrent” of AI-driven commerce powered by stablecoins and high-throughput blockchains, underscoring how these tokens are being viewed not just as trading tools but as programmable payment rails.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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