European banks join forces on euro stablecoin amid push for payment autonomy
A coalition of ten major European banks has created a new company, Qivalis, to issue a euro‑denominated stablecoin designed to challenge the dominance of U.S. dollar tokens in digital payments. The project marks one of the most coordinated attempts yet by traditional financial institutions in Europe to shape the future of on‑chain money and payment infrastructure.
The founding members of the consortium include some of Europe’s largest and most established banks: BNP Paribas, ING, UniCredit, Banca Sella, KBC, DekaBank, Danske Bank, SEB, Caixabank and Raiffeisen Bank International. BNP Paribas joined after the initiative was first conceived, signaling growing interest among tier‑one institutions in a European‑led solution for digital settlement.
Qivalis plans to launch its euro‑pegged token in the second half of 2026, subject to regulatory approvals and the successful completion of licensing procedures. The timing aligns with the rollout of the European Union’s comprehensive regulatory framework for crypto assets, which is expected to clarify the rules for issuing and using stablecoins within the bloc.
Leadership for the new venture comes from seasoned figures in both traditional finance and the crypto industry. Jan‑Oliver Sell, formerly CEO of Coinbase Germany, has been appointed chief executive of Qivalis. Howard Davies, who previously chaired NatWest, will serve as chair of the board. Their combined backgrounds suggest the consortium aims to bridge institutional standards of compliance and risk management with the technical realities of blockchain‑based finance.
Headquartered in Amsterdam, Qivalis intends to build a team of 45 to 50 employees over the next two years. About one‑third of these roles have already been filled, covering areas such as compliance, risk, product development and technology. The hiring plan underscores that this is not a side experiment, but a dedicated, stand‑alone business geared toward operating at scale across the European market.
At launch, the Qivalis stablecoin will primarily target cryptocurrency trading and settlement. The token is expected to enable near‑instant transfers with low fees between exchanges, brokers and institutional clients, positioning it as a more efficient on‑chain cash alternative to traditional bank transfers or dollar‑stablecoins for euro‑denominated activity. Over time, the consortium plans to broaden the use cases to cover a wider range of payment and treasury functions for both businesses and, potentially, retail users.
The project arrives against the backdrop of explosive growth in stablecoins globally, where dollar‑backed tokens such as Tether have captured the overwhelming share of market volume. By contrast, euro‑pegged stablecoins remain a niche segment, with only a handful of regulated issuers and relatively modest circulation levels. Existing institutional offerings, including those issued by European banks, have so far reached tens of millions of euros in outstanding supply, far below the scale of their U.S. counterparts.
For the participating banks, the motivation is not only commercial but also strategic. Relying on dollar‑denominated digital tokens exposes European users and institutions to foreign currency risk, regulatory dependencies and potential geopolitical pressure points. A credible, bank‑backed euro stablecoin is seen as a way to keep settlement, liquidity and data flows anchored within the European financial system, while still benefiting from the efficiency of blockchain rails.
However, the initiative must navigate a complex regulatory landscape. Policymakers and central bankers, including those at the European Central Bank (ECB), have been vocal about the potential risks posed by large privately issued stablecoins. Concerns range from the possibility that deposits could migrate from traditional banks into digital tokens to the risk that large stablecoin ecosystems might interfere with the transmission of monetary policy or create new forms of systemic risk.
To address these issues, Qivalis is seeking an Electronic Money Institution (EMI) license from the Dutch central bank. Operating as an e‑money issuer would subject the project to strict rules on reserve management, segregation of client funds, capital requirements and ongoing supervision. According to people familiar with the initiative, Qivalis has also engaged in discussions with the ECB, which has signaled support for a solution led by European institutions that fits within the existing regulatory framework and contributes to strategic autonomy in payments.
The choice of Amsterdam as a base is also strategic. The Netherlands has positioned itself as a hub for fintech and digital assets, with a regulatory environment that combines openness to innovation with relatively clear expectations on compliance. For a pan‑European stablecoin issuer, having a central bank and supervisory authority experienced in regulating cross‑border payments and fintech could prove advantageous.
Qivalis is expected to place particular emphasis on transparency around reserves, governance and risk controls. In contrast to some early stablecoin experiments that operated with limited disclosure, bank‑backed initiatives are under pressure to demonstrate that each token is fully backed by high‑quality, liquid euro‑denominated assets. This is likely to mean holding reserves primarily in cash and short‑dated sovereign or similarly safe instruments, with regular independent reporting.
From a market perspective, the first phase of adoption will likely focus on institutional users: trading firms, exchanges, custodians, payment providers and large corporates engaged in cross‑border flows. These actors already rely heavily on stablecoins but often default to dollar tokens because of liquidity and integration advantages. If Qivalis can offer comparable ease of integration, robust liquidity and regulatory clarity, it could quickly become the default choice for euro‑denominated activity on public and permissioned blockchains.
Over the medium term, a euro stablecoin supported by a consortium of household‑name banks could also catalyze innovation in areas such as programmable payments, on‑chain securities settlement and tokenized deposits. For example, corporate treasurers could use programmable euro tokens to automate recurring payments, manage intraday liquidity or settle tokenized commercial paper in real time. Financial institutions could integrate the stablecoin into collateral management systems or repo markets, reducing settlement risk and operational friction.
The emergence of Qivalis also intersects with the ongoing debate over a potential digital euro issued by the ECB. While a central bank digital currency would represent a direct liability of the central bank, a bank‑issued stablecoin like Qivalis remains private money under public supervision. In practice, both instruments could coexist: a digital euro aimed at broad public use and financial stability objectives, and regulated private stablecoins optimized for specific use cases, innovation and competition in services.
The initiative does not exist in isolation. A separate group of banks in both Europe and the United States is reported to be studying or piloting their own stablecoin projects, reflecting a clear shift in how incumbents view digital currencies. What was once seen as a threat from the crypto sector is increasingly being reframed as a new layer of financial infrastructure that established players want to control or at least help shape.
Nevertheless, success is not guaranteed. Qivalis will compete not only with entrenched dollar‑stablecoins, but also with upcoming euro‑denominated tokens from fintechs, payment companies and possibly other bank consortia. To stand out, it will need to combine strict regulatory compliance with ease of use for developers and businesses: robust APIs, broad exchange listings, compatibility with major blockchains and compelling economics for market makers and payment partners.
Another key challenge will be user trust. While the backing of well‑known banks can reassure regulators and institutional clients, some crypto‑native participants remain skeptical of traditional financial institutions entering the space. Qivalis will have to prove that it can meet institutional standards of security and regulation without sacrificing the openness, composability and speed that make on‑chain assets attractive in the first place.
If Qivalis succeeds, the impact could extend beyond crypto markets into the wider European payment ecosystem. A widely used, compliant euro stablecoin could lower the cost of cross‑border transfers within the euro area, streamline settlement between banks and fintechs, and provide a new backbone for innovative financial products. It could also strengthen the international role of the euro in digital commerce, especially if adopted by non‑European platforms and service providers.
For now, all eyes will be on the regulatory process and the consortium’s ability to execute on its roadmap. The period leading up to the planned 2026 launch will be crucial for building partnerships with exchanges, payment firms and institutional clients, stress‑testing the technology stack, and aligning with evolving European rules on crypto assets and e‑money. The project will serve as a test case for whether Europe’s banking sector can move from cautious observation to active leadership in the era of programmable digital money.