Ten European Banks Join Forces to Create Euro Stablecoin by 2026

Ten prominent European banks have come together to establish a euro-backed stablecoin set to launch by mid-2026, marking an important step towards diminishing U.S. dollar dominance in the global stablecoin market.

Key Takeaways

A consortium of ten European banks will create a euro-backed stablecoin by 2026, aiming to challenge U.S. dollar influence.
This initiative is named Qivalis and is based in Amsterdam, focusing on regulatory compliance through the MiCA framework.
Leadership for the consortium includes veterans from Coinbase and major banking institutions.
Concerns over the risks of dollar-pegged stablecoins have prompted this move, as they account for the vast majority of the market.
The euro stablecoin aims to improve cross-border payments and boost digital transactions.

10 EU Banks Unite to Launch Euro Stablecoin by 2026

Introduction to the Consortium’s Mission

Ten major banks across Europe have joined forces to create a euro-backed stablecoin, intended for launch by mid-2026. This venture represents a strategic move to counteract the U.S. dollar's significant role in the more than $300 billion global stablecoin market.

The consortium features BNP Paribas and nine other leading European banks, including ING, UniCredit, CaixaBank, Danske Bank, SEB, Raiffeisen Bank International, Banca Sella, KBC, and DekaBank. They aim to build a digital payment solution compliant with the Markets in Crypto-Assets (MiCA) framework through their new entity, Qivalis, located in Amsterdam.

EU Banks Euro Stablecoin

Leadership and Regulatory Compliance

Setting Up a Strong Leadership Team

Qivalis has formed a robust leadership structure to oversee the project from its regulatory approval stage to its commercial rollout.

Jan-Oliver Sell, who was previously the Managing Director at Coinbase Germany and obtained the first crypto custody license from BaFin, will take on the role of CEO. Floris Lugt, the former head of Digital Assets Wholesale Banking at ING, has been appointed as CFO. Sir Howard Davies, who has served as Chairman of both the Financial Services Authority and RBS, will lead the Supervisory Board, lending decades of banking and regulatory experience. All leadership positions are pending regulatory approval.

The consortium has already sought an electronic money institution license from the Dutch Central Bank.

Sell noted, “The launch of a euro-denominated stablecoin, backed by a consortium of European Banks, represents a watershed moment for European digital commerce and financial innovation,” underscoring the project's goal to enhance monetary independence in the digital landscape.

The initiative encourages other banks to collaborate in hopes of fostering a wider industry shift toward innovative payment solutions.

Addressing Concerns Over Dollar Stablecoins

Warnings from European Financial Authorities

This banking consortium emerges in response to escalating warnings from financial authorities in Europe regarding the risks posed by dollar-backed stablecoins.

Olaf Sleijpen, the governor of the Dutch central bank, expressed concerns that the rapid expansion of stablecoins could compel the European Central Bank (ECB) to reevaluate its monetary policy if instability provokes widespread sell-offs of key assets, primarily U.S. Treasuries. He remarked, “If stablecoins in the US increase at the same pace as they have been increasing, they will become systemically relevant at a certain point,” indicating uncertainty over the ECB’s potential response.

In October, the European Systemic Risk Board (ESRB), led by ECB President Christine Lagarde, highlighted vulnerabilities associated with multi-issuer stablecoin models. These models have EU-regulated entities holding local reserves while their non-EU counterparts manage identical tokens backed by assets abroad. The ESRB urged a ban on such structures, warning that sudden redemptions could place European reserves under strain and expose the region to offshore financial risks.

Pierre Gramegna, Managing Director of the European Stability Mechanism, emphasized the urgency during an October hearing, stating, “Europe should not be dependent on U.S. dollar-denominated stablecoins, which are currently dominating markets.”

Lagarde drew parallels to past banking crises, highlighting how mismatches in liquidity and inadequate reserves previously destabilized various institutions across borders.

Enhancing European Payment Systems with the Stablecoin

Aims for Modernized Transactions

The proposed stablecoin aims to facilitate around-the-clock access to efficient cross-border payments, enable programmable transactions, and improve digital asset settlements and supply chain management.

Lugt commented, “We believe this development requires an industry-wide approach, and it’s imperative that banks adopt the same standards,” reinforcing the need for unified financial practices.

The project aspires to deliver fast and affordable payment and settlement options while ensuring adherence to MiCA regulations.

In addition to this banking initiative, the ECB is pushing forward with its digital euro project. ECB Executive Board member Piero Cipollone suggested that recent discussions on customer holding limits mark a significant advancement toward a potential rollout in 2029. He noted, “The middle of 2029 could be a fair assessment.”

Moreover, the European Parliament is anticipated to approve a legislative framework position by May 2026, with member states striving to reach a consensus by the end of the year.

Going forward, Europe is adopting a two-pronged approach that includes developing private-sector stablecoins and advancing public digital currency efforts. This aims to modernize payment systems while reducing dependence on U.S.-based financial frameworks and private payment entities like Visa and PayPal.