Ten EU banks jointly launch euro stablecoin, scheduled to go live in mid-2026

Ten major European banks have formed an alliance and plan to launch a euro stablecoin by mid-2026 to counter the dominance of the US dollar in the global stablecoin market, which exceeds $300 billion. The project is jointly initiated by banks such as BNP Paribas, ING, UniCredit, and CaixaBank, and will be developed through the newly established Qivalis institution to ensure compliance with the EU MiCA regulations.

Qivalis has assembled an experienced leadership team, with former Compliance CEX Germany Managing Director Jan-Oliver Sell serving as CEO and former ING Head of Digital Assets Floris Lugt as CFO. The alliance has applied to the Dutch Central Bank for an electronic money institution license and welcomes more banks to join to drive payment innovation.

European regulators have repeatedly warned about the potential risks of US dollar stablecoins. Dutch Central Bank Governor Klaas Knot stated that the rapid growth of dollar stablecoins could trigger sell-offs of underlying assets, affecting European monetary policy. The European Systemic Risk Board (ESRB) also pointed out vulnerabilities in the multi-issuer stablecoin model, which could deplete European reserves and pose offshore debt risks.

The euro stablecoin aims to enhance payment infrastructure, enabling low-cost, round-the-clock cross-border payments, programmable transactions, and digital asset settlement, while ensuring regulatory compliance. This initiative complements the European Central Bank’s digital euro project. The European Parliament is expected to pass the legislative framework by May 2026, and member states plan to reach a general agreement by the end of the year.

This project marks a dual-track approach by Europe in the field of digital currency: developing private sector stablecoins while advancing public digital currency initiatives to modernize the payment system and reduce reliance on the US dollar and private payment platforms. (Cryptonews)