Introduction to the Initiative
A group of major European banks is moving forward with a joint plan to launch a euro stablecoin as competition in global digital payments intensifies. The initiative centers on Qivalis, a new company backed by ten banks, including ING, UniCredit, and BNP Paribas. The group aims to issue a euro-pegged token in the second half of 2026. They presented the plan in Amsterdam on Tuesday during a launch event outlining their strategy.
Qivalis CEO Jan-Oliver Sell said the effort gives Europe a chance to build its own settlement infrastructure. Sell previously led Coinbase’s German business and held senior roles at Binance. He said his experience shaped his view of what the region needs to compete.
The company will operate from Amsterdam and plans to hire up to 50 employees within two years. Sell confirmed that Qivalis has hired roughly a third of that number already.
The Growing Demand for Stablecoins and Market Landscape
Demand for stablecoins has grown sharply in recent years as digital transactions increase worldwide. The trend has pushed banks to explore blockchain technology after years of hesitation. Many banks now see tokenised money as essential to staying relevant in a fast-changing payments environment.
However, dollar-based companies currently dominate the market. Tether’s dollar-based token has about $185 billion in circulation and continues to grow rapidly. U.S. financial firms are also preparing new dollar-backed stablecoins after new national rules went into effect this year.
Europe Seeks a Stronger Position in Digital Payments
European demand for euro stablecoins remains limited, but banks argue that regional infrastructure is necessary. Societe Generale’s crypto arm launched a euro token in 2023, but its supply remains small at €64 million. That gap has raised concerns about Europe’s dependence on U.S. payment tokens.
Qivalis said its stablecoin will offer near-instant and low-cost settlement capabilities across various financial markets. Howard Davies, the former NatWest chair who will lead the Qivalis board, said initial adoption will likely come from crypto trading platforms.
Sell said the Qivalis name aims to evoke trust and values across multiple languages. He noted that ease of pronunciation was an important consideration for clients.
Regulatory Path and Banking Involvement
The company expects to complete licensing with the Dutch central bank within nine months. Qivalis is applying for an Electronic Money Institution licence, which provides the regulatory foundation for issuing the stablecoin.
ING digital assets lead Floris Lugt will serve as Qivalis’s CFO. He said the group maintains regular contact with the European Central Bank (ECB).
Lugt said policymakers want European control over key payments infrastructure. He added that regulators worry about the rapid growth of U.S. fintech stablecoins, which could reduce European influence over currency flows. He said Qivalis could help Europe maintain strategic autonomy.
Broader Regulatory Context and Similar Initiatives
The ECB continues to explore a digital euro as another response to foreign payment dominance. President Christine Lagarde has warned European lawmakers about the risks of privately issued stablecoins. She said they could undermine monetary policy and threaten financial stability.
European regulators also worry about funds moving outside regulated banking channels. They want oversight frameworks that give them clear visibility into stablecoin operations and reserves.
The banks behind Qivalis first announced the project in September. The original group included ING, UniCredit, Banca Sella, KBC, DekaBank, Danske Bank, SEB, Caixabank, and Raiffeisen Bank International. BNP Paribas joined later and is also part of a separate global stablecoin study group.
Ten banks, including Bank of America, Deutsche Bank, Goldman Sachs, and UBS, are assessing a different stablecoin initiative. The involvement of multiple major institutions highlights how rapidly competition is growing in the tokenised payments space.