A consortium of 10 EU-based banks has announced plans to introduce a euro-pegged stablecoin in the second half of 2026, aiming to enhance digital payments within the European Union. The initiative, led by an Amsterdam-based entity called Qivalis, seeks regulatory approval from the Dutch Central Bank and compliance with the EU’s Markets in Crypto-Assets (MiCA) framework.

The banks, including BNP Paribas, are collaborating to create a stablecoin that maintains a 1:1 peg to the euro, enabling seamless on-chain transactions. BNP Paribas highlighted the effort in a press release, noting the consortium’s goal to launch under Qivalis, which has been authorized by the Dutch Central Bank. Qivalis CEO Jan-Oliver Sell emphasized the stablecoin’s role in promoting monetary autonomy, stating, “A native euro stablecoin isn’t just about convenience — it’s about monetary autonomy in the digital age.” He added that it presents new opportunities for European companies and consumers to engage with on-chain payments and digital asset markets in their own currency.

This development occurs amid evolving regulatory landscapes in both the EU and the US. In the US, President Donald Trump signed the GENIUS Act into law in July, establishing a framework for payment stablecoins. Meanwhile, the European Central Bank (ECB) has advised close monitoring of the stablecoin sector due to its rapid growth. An ECB report from November indicated that risks associated with stablecoins in the euro area are likely limited, primarily due to low adoption and regulatory oversight. ECB adviser Jürgen Schaafhe noted that euro-denominated stablecoins had a market capitalization of less than 350 million euros (approximately $407 million) as of July, representing less than 1% of the global stablecoin market.

The EU’s push for a homegrown stablecoin contrasts with challenges faced by international issuers. Tether discontinued redemptions for its euro-pegged stablecoin, EURt, on November 25, exactly one year after announcing the discontinuation. The company attributed this to MiCA regulations, with CEO Paolo Ardoino highlighting potential risks for stablecoins under the new rules. Dutch Central Bank Governor Olaf Sleijpen has also warned of possible risks to monetary policy from the expanding stablecoin market.

This initiative could strengthen the EU’s position in the digital asset space by reducing reliance on non-euro stablecoins and fostering local innovation. As the sector grows, regulatory scrutiny will likely intensify to ensure stability and compliance.

In conclusion, the Qivalis-led consortium represents a proactive step by EU banks to integrate stablecoins into the regional economy, potentially setting a precedent for monetary tools in the digital era. With regulatory hurdles ahead, the launch’s success will depend on navigating MiCA and maintaining the euro peg effectively.

Disclaimer

The content on CoinReporter.io is for informational purposes only and is not financial or investment advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult a qualified financial advisor before making investment decisions. CoinReporter.io and its authors are not liable for any losses resulting from actions based on this website’s content.