Europe is strengthening its position in the digital payments landscape. Ten major European banks, including BNP Paribas, ING, UniCredit and CaixaBank, have announced the formation of a new entity called Qivalis. This entity will issue a euro-backed stablecoin in the second half of 2026, providing a viable alternative to the dominance of dollar-backed stablecoins.
Based in Amsterdam, Qivalis plans to establish the foundation for a private digital euro that fully complies with European regulations. The consortium has appointed Jan-Oliver Sell, former head of Coinbase Germany, as its chief executive. He will be supported by Floris Lugt, ING’s head of digital assets, who will serve as chief financial officer. Howard Davies, former chairman of NatWest, will assume the role of chairman.
A pan-European banking project
The initiative is backed by nine European banks: Banca Sella, CaixaBank, Danske Bank, DekaBank, ING, KBC, Raiffeisen Bank International, SEB and UniCredit. The recent addition of BNP Paribas strengthens the project’s credibility and influence within the European financial sector.
According to the project’s director, the name “Qivalis” was chosen for its international, inclusive and easy-to-pronounce qualities. Beyond its symbolism, the objective is clear: to enable European businesses and individuals to use a euro-backed stablecoin for payments, investments and on-chain activities without relying on US dollar-backed solutions.
What are stablecoins, and why is the euro lagging behind?
A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically linked to a fiat currency such as the US dollar or the euro. It functions similarly to a money market fund: for each issued token, the issuer holds liquid assets corresponding to the reference currency in reserve.
Currently, the market is dominated by dollar-backed stablecoins, particularly those issued by Tether and Circle. Tether, the global leader, has placed approximately £185 billion worth of tokens into circulation. By contrast, euro-backed stablecoins remain marginal, with an estimated market capitalisation of less than €350 million — less than 1% of the global total. This reflects the dollar’s dominance in international trade and Europe’s slower adoption of this type of digital asset.
A response to the American initiative
Qivalis’ initiative comes amid intense international competition. In the United States, several major financial institutions are preparing to launch their own stablecoins, encouraged by recent clarification of the legal framework. In July, the GENIUS Act was signed into law in the US, establishing specific rules for payment stablecoins.
In response to this acceleration, Europe aims to protect its monetary sovereignty in the digital age. Jan-Oliver Sell emphasises that the issue goes beyond technological innovation: “A native euro stablecoin is a matter of monetary autonomy. It opens up new opportunities for European businesses and consumers in the digital economy.”
Regulatory approval still pending
Before any launch, Qivalis must obtain an Electronic Money Institution (EMI) licence from the Dutch Central Bank. The approval process is already underway and may take six to nine months. The stablecoin can only be issued once the application is fully approved, in strict compliance with the European Markets in Crypto-Assets (MiCA) regulation.
This framework is now fully in force and imposes strict requirements on reserves, governance and transparency. For the banks involved, these regulations are both a constraint and a competitive advantage, ensuring a high level of security and trust for future users.
Economic opportunities and central bank caution
Monetary authorities are closely monitoring the rise of stablecoins. Olaf Sleijpen, governor of the Dutch Central Bank, recently warned of potential risks to monetary policy if the market expands too rapidly. In November, the European Central Bank concluded that risks currently remain limited, while highlighting the need for “close monitoring.”
This caution reflects the potential impact of stablecoins on financial flows, monetary policy transmission, and banking system stability.
Tether’s withdrawal leaves a gap in the euro
Notably, Tether has officially exited the European market for euro-backed stablecoins. On 25 November, the company stopped redeeming its EURt stablecoin, a year after announcing it would discontinue support. CEO Paolo Ardoino cited constraints imposed by MiCA regulations as too risky for the company’s business model.
Qivalis intends to fill this strategic gap with a compliant, institutional solution backed by some of Europe’s largest banks.
Potential impact on European digital payments
If successful, Qivalis’ stablecoin could become a key tool for euro-denominated on-chain payments, supporting international settlements, asset tokenisation, regulated decentralised finance, and business-to-business transactions.
However, widespread adoption remains uncertain, as dollar-backed stablecoins are already deeply integrated into the global ecosystem. The project’s success will depend on both trust in the solution and its integration with existing financial infrastructure.
With Qivalis, Europe is signalling its clear ambition to play a significant role in the evolving digital monetary landscape.
