EU Banks to Launch a Euro Stablecoin

European banks are accelerating work on their own euro-backed stablecoin. The Qivalis consortium, bringing together some of the continent’s largest financial institutions, is in advanced discussions with cryptocurrency exchanges and liquidity providers to prepare distribution of the digital currency ahead of its planned launch in the second half of 2026.

Among the members are ING, UniCredit, and BBVA, which joined the initiative in early February as the twelfth participant. The consortium was first announced in September 2025 with nine founding banks, including CaixaBank, Danske Bank, Raiffeisen Bank International, KBC, SEB, DekaBank, and Banca Sella.

Qivalis is led by Jan Sell, the former head of Coinbase in Germany. According to Sell, the project has clear international ambitions. The group is holding talks with both European and global platforms, aiming to build a regulated European alternative to U.S. dollar-based stablecoins.

Focus on Real-Time Business Payments

The new digital currency is designed to support real-time business payments, including cross-border transactions and international trade. Banks participating in the consortium will be able to offer the stablecoin directly to their clients.

Qivalis is actively seeking partners that comply with European Union regulations, particularly the Markets in Crypto-Assets (MiCA) framework. Among the companies that have reportedly held discussions with one of the consortium’s banks is the Spanish exchange Bit2Me, which holds a MiCA license.

During one presentation, Qivalis CFO Floris Lugt confirmed that the stablecoin reserves will be backed on a 1:1 basis. At least 40 percent of the funds will be held in bank deposits, while the remainder will be invested in short-term, high-quality eurozone government bonds to reduce concentration risk in any single country. The project also plans to allow token redemptions 24 hours a day, seven days a week.

Opportunities and Concerns

Despite a weaker period in the cryptocurrency market, blockchain development has not slowed down. On the contrary, more major financial institutions are recognizing its practical applications. Banks see stablecoins as a tool to lower settlement costs, simplify processes, and significantly speed up payments — especially in international transactions. Real-time operations and continuous redemption availability could translate into greater efficiency and improved liquidity management for businesses.

However, the initiative is not without critics. Some commentators argue that privately issued stablecoins from large financial institutions could effectively function as a form of indirect central bank digital currency (CBDC). Concerns focus primarily on potential control over access to funds and the risk of restricting users’ access to financial services. Supporters emphasize the regulated nature of the project, while opponents warn about possible implications for privacy and financial freedom in the digital age.