EU banking giants team up to launch euro stablecoin by 2026
In a major step toward strengthening Europe’s digital financial autonomy, ten leading European banks have joined forces to create a euro-backed stablecoin expected to launch by mid-2026. The project aims to reduce the region’s overwhelming dependence on U.S. dollar stablecoins, which currently dominate more than 99% of the $300 billion global stablecoin market.
The newly formed initiative brings together BNP Paribas, ING, UniCredit, CaixaBank, Danske Bank, SEB, Raiffeisen Bank International, Banca Sella, KBC, and DekaBank under a shared Amsterdam-based entity called Qivalis. The stablecoin will be fully compliant with the EU’s MiCA regulatory framework.
European regulators have grown increasingly uneasy about the bloc’s reliance on dollar-denominated tokens, especially as euro-pegged stablecoins remain rare, with only about $649 million in circulation. The consortium hopes its project will place Europe on a stronger footing in the rapidly evolving digital payments landscape.
A new leadership team and dutch oversight
Qivalis has assembled a seasoned leadership group to guide the stablecoin from concept to commercial rollout.
- Jan-Oliver Sell, former Managing Director of Coinbase Germany — and the person who secured BaFin’s first crypto custody license — will lead the company as CEO.
- Floris Lugt, previously head of Digital Assets Wholesale Banking at ING, joins as CFO.
- Sir Howard Davies, former head of the U.K. Financial Services Authority and former RBS chair, will lead the Supervisory Board.
All roles are pending regulatory approval, and the consortium has already submitted an application for an electronic money institution license with the Dutch Central Bank.
Sell described the initiative as a “watershed moment” for European digital finance, highlighting that a bank-backed euro stablecoin could help strengthen Europe’s monetary independence in an increasingly digitized world. The consortium remains open to expanding membership to include more banks.
Regulators sound alarm over dollar stablecoin dominance
The launch follows growing warnings from European officials about the risks posed by the global dominance of dollar-backed tokens.
Dutch central bank governor Olaf Sleijpen recently issued a stark caution: if U.S. stablecoins continue expanding at their current pace, they could become systemically important — to the point where sudden instability might force the European Central Bank into policy decisions driven by U.S. market dynamics.
The European Systemic Risk Board (ESRB), led by ECB President Christine Lagarde, has also identified vulnerabilities in multi-issuer stablecoin structures. These involve arrangements where EU-regulated entities hold reserves locally, while equivalent tokens are issued elsewhere — a setup the ESRB warns could overwhelm European reserves during periods of mass redemptions.
Similarly, Pierre Gramegna, Managing Director of the European Stability Mechanism, emphasized that Europe cannot afford to remain dependent on dollar-backed tokens. Lagarde compared some of the risks to pre-crisis banking vulnerabilities involving liquidity mismatches and insufficient reserves.
Aiming to modernize Europe’s payment systems
The planned euro stablecoin is designed to support 24/7 payments, programmable financial transactions, and more efficient settlement systems — benefits that could significantly improve cross-border commerce and digital asset operations.
“We believe this development requires an industry-wide approach,” CFO Lugt said, stressing the importance of shared standards among European banks.
While Qivalis pushes ahead with its private-sector solution, the European Central Bank is also continuing its work on a public digital euro. ECB Executive Board member Piero Cipollone recently said that policymakers’ agreement on customer holding limits represents a major milestone, adding that 2029 is a realistic timeline for launch.
The European Parliament is expected to finalize its position on the digital euro framework by May 2026, with EU member states aiming for an agreement by the end of the year.
Together, the private and public tracks reflect Europe’s broader goal: building modern, resilient payment infrastructure while reducing reliance on U.S.-controlled stablecoins and major private-sector payment platforms like Visa and PayPal.
Disclaimer
This rewritten article is based on an original report published by CryptoNews. You can view the original at https://cryptonews.com/.
