A consortium of leading European banks, known as Qivalis, has reached the final stage of developing a euro-backed stablecoin that could reshape the digital payments landscape across the continent. With high-profile members such as ING, UniCredit, and the recently added BBVA, the consortium is rapidly securing agreements with cryptocurrency exchanges and liquidity providers. The targeted launch for the project is set for the second half of 2026, marking a major step for Europe’s financial sector as it moves to carve out space in the booming world of digital assets.
The Making of Qivalis: An Alliance of Major Banks
Qivalis was officially unveiled in September 2025 by a coalition of nine institutions, including CaixaBank, Danske Bank, Raiffeisen Bank International, KBC, SEB, DekaBank, and Banca Sella. The recent addition of ING, UniCredit, and BBVA further strengthens the alliance, bringing together some of the continent’s most influential banking players. These banks have combined their resources and expertise to collaborate on a secure and regulated stablecoin, aiming to set industry standards and position Europe as a formidable player in the digital currency market.
European Regulation and Market Implications
According to Jan Sell, Qivalis’ senior management and previously the head of Coinbase Germany, the central objective is to offer a regulated European alternative to U.S. dollar-based tokens dominating today’s digital asset markets. Collaboration talks, Sell noted, are not limited to European partners but prioritize compliance with the European Union’s Markets in Crypto Assets (MiCA) regulatory framework. Engagements are also underway with MiCA-licensed platforms, such as Spain-based Bit2Me, underscoring a commitment to regulatory adherence.
Designed to maintain a one-to-one peg to the euro, the stablecoin seeks to support the growing momentum of digital payments in Europe. By introducing a transaction infrastructure rooted in European monetary policy, the initiative aims to provide a viable alternative to the US dollar-pegged tokens currently prevailing in digital markets.
Transparent Reserves and Real-Time Redemption
Qivalis representatives emphasize that the stablecoin’s reserve model prioritizes transparency and prudence. Under the proposed structure, at least 40% of the reserves will be held on deposit in banks, while the remainder will be allocated to high-credit, short-term government bonds from various eurozone countries. This diversified approach is intended to reduce exposure to the risk of any single nation, ensuring robust backing for the token.
The technology underpinning the stablecoin is engineered to allow 24/7 instant redemption, catering to the increasing demand for cross-border transactions and global commercial payments. European banks see this solution as strategically important for enhancing their digital asset-based payment capabilities, especially in international contexts.
Bank officials highlight that these objectives mark a significant step toward the widespread, regulated, and sustainable adoption of cryptocurrencies within the broader European financial ecosystem.
In addition to these institutional efforts, a new partnership between Blockchain.com and Ondo Finance has expanded access for European users to tokenized US stocks and exchange-traded funds through blockchain technology. This development points to a growing appetite for integrating conventional financial assets into the digital asset ecosystem.
According to bank statements, this joint stablecoin initiative is poised to play a pivotal role in shaping the future of Europe’s regulated crypto market, providing a reliable digital payment option that aligns with both compliance requirements and market expectations.
