Ten major European banks unveiled qivalis on Tuesday, an Amsterdam-based consortium that will issue a euro-pegged stablecoin targeted for launch in the second half of 2026. The initiative marks Europe's most significant effort to challenge the overwhelming dominance of US dollar-backed digital assets in the global stablecoin market.
ING, UniCredit and BNP Paribas anchor the consortium, which also includes** Banca Sella, KBC, DekaBank, Danske Bank, SEB, CaixaBank** and Raiffeisen Bank International. The group held a press conference in Amsterdam on December 2 to formally announce the venture, which was first disclosed in September with nine founding members.
Jan-Oliver Sell, formerly of Coinbase Germany, will serve as CEO. Floris Lugt, ING's digital asset lead, takes the CFO role, while former NatWest chairman Howard Davies will chair the new company.
The consortium faces a daunting task. Dollar-backed stablecoins account for approximately 90 percent of the total stablecoin market, which reached $200 billion earlier this year. Tether's USDT alone holds around $150 billion in circulation, while Circle's USDC commands roughly $60 billion, according to industry data.
What Happened
Qivalis is currently applying for an Electronic Money Institution license from the Dutch Central Bank, which will allow the company to issue electronic money under European financial regulations. The licensing process should take six to nine months from the application date, according to Sell.
BNP Paribas joined the consortium after the initial September announcement, bringing the total to ten banks spanning eight European countries. The choice of Amsterdam for headquarters positions the venture within a jurisdiction known for progressive digital asset regulation and direct access to the Dutch central bank for licensing purposes.
The 2026 launch timeline aligns with the full implementation of the European Union's Markets in Crypto-Assets regulation. MiCA, which came into full effect on December 30, 2024, provides a clear legal framework for stablecoin issuers and requires strict reserve management, anti-money-laundering controls and transparency standards.
The qivalis euro stablecoin targets use cases beyond retail trading. The consortium expects the token to serve business-to-business payments, corporate treasury management and cross-border settlements. Each member bank will be able to offer its clients wallets, custody and related services connected to the digital token.
The announcement comes as European policymakers express growing concern about monetary sovereignty in the digital economy. The dominance of dollar-pegged tokens has raised questions about Europe's ability to maintain financial independence as digital payments continue to expand.
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Why It Matters
The qivalis initiative represents a strategic response to the structural imbalance in the global stablecoin market, where US dollar-backed tokens have captured nearly the entire sector. This concentration has significant implications for cross-border payments, which generate an estimated $120 billion in transaction fees annually.
The timing coincides with accelerating stablecoin adoption across traditional finance. Swedish fintech Klarna announced on November 25 that it will launch KlarnaUSD in 2026, built on Stripe's Tempo blockchain. Ripple received approval from Abu Dhabi's Financial Services Regulatory Authority on November 27 for its RLUSD stablecoin, which now serves as verified collateral for lending and trading within the Abu Dhabi Global Market.
The emergence of bank-led stablecoin consortia reflects a broader shift in institutional attitudes toward digital assets. Where banks once viewed cryptocurrencies with skepticism, many now recognize stablecoins as infrastructure for modernizing payment systems.
MiCA's regulatory clarity has accelerated this shift. The framework requires stablecoin issuers to maintain 30 percent of reserves in low-risk commercial banks within the EU, rising to 60 percent for larger players. These reserve requirements aim to prevent liquidity crises while ensuring that stablecoins function as reliable financial instruments.
The qivalis consortium's structure allows the euro stablecoin to benefit from the combined reach and regulatory credibility of ten major European financial institutions. This contrasts with existing euro stablecoin efforts, which have struggled to gain traction against their dollar-denominated competitors.
Success will depend on whether qivalis can convince businesses and consumers to adopt euro-denominated digital payments at scale. The consortium enters a market where network effects strongly favor established dollar stablecoins, which benefit from deep liquidity and widespread acceptance across cryptocurrency exchanges and decentralized finance platforms.
The 2026 launch date gives qivalis time to build infrastructure and establish partnerships, but also allows competitors to strengthen their positions. Several US financial institutions are preparing their own stablecoin launches following recent regulatory clarity in the United States.
For European policymakers, qivalis represents a test case for whether regulated, bank-backed stablecoins can gain meaningful market share in a sector dominated by private issuers. The outcome will influence future regulatory approaches and could determine whether Europe maintains a significant role in the evolving digital payments landscape.
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