Major European Banks Unite to Launch Euro Stablecoin Venture 'qivalis'

A coalition of ten major European banks has launched a new venture to create a regulated euro-pegged stablecoin, aiming to challenge the dominance of USD-backed tokens like USDT and USDC by 2026.

In a landmark move for the continent's digital finance ambitions, ten of Europe's most prominent financial institutions have united to form qivalis, a new Amsterdam-based company. The consortium's explicit goal is to launch a euro-backed stablecoin, positioning it as a European alternative to the overwhelming market dominance of U.S. dollar-denominated stablecoins. This initiative represents one of the most significant coordinated efforts by traditional banks to date to establish a foothold in the rapidly evolving digital asset ecosystem.

The founding banks include ING, UniCredit, BNP Paribas, Raiffeisen Bank International, SEB, Danske Bank, CaixaBank, KBC, Banca Sella, and DekaBank. Together, they intend to build a regulated product that can compete with tokens like Tether's USDT and Circle's USDC, which collectively command a market capitalization exceeding $261 billion. The venture has appointed Jan-Oliver Sell, known for his previous work at Coinbase in Germany, as its CEO. Floris Lugt, ING’s digital asset lead, will serve as CFO, while former NatWest chair Howard Davies will head the board.

The strategic timing of this announcement coincides with accelerating regulatory clarity in Europe under the Markets in Crypto-Assets (MiCA) framework and competitive pressure from the United States, where legislative efforts like the GENIUS Act aim to bolster the global reach of dollar-backed digital assets. For qivalis, the mission extends beyond commercial success; it is framed as an effort to reclaim monetary influence and provide a digital euro alternative for European markets.

The Consortium: A Pan-European Banking Powerhouse

The formation of qivalis is notable not just for its objective but for the breadth and depth of its founding members. This is not a project led by a single institution or a niche fintech startup; it is a coalition of ten major banks with deep roots across the European Union and beyond. Each member brings substantial retail and corporate customer bases, regulatory expertise, and settlement infrastructure.

ING (Netherlands), BNP Paribas (France), and UniCredit (Italy) represent some of the continent's largest universal banks. Raiffeisen Bank International provides a strong presence in Central and Eastern Europe, while SEB and Danske Bank are Nordic powerhouses. CaixaBank is a leader in Spain, KBC in Belgium, Banca Sella in Italy, and DekaBank is a central asset manager for German savings banks. This geographic and operational diversity is a deliberate strength, designed to ensure the stablecoin's utility and acceptance across different European markets from its inception.

The choice of Amsterdam as the company's base is also strategic. The Netherlands has positioned itself as a proactive hub for fintech and digital assets within the EU. qivalis plans to secure an Electronic Money Institution (EMI) license from the Dutch central bank, De Nederlandsche Bank—a process the company expects to take six to nine months. This regulatory pathway under existing EU law provides a clear route to operation ahead of MiCA's full implementation for stablecoins.

Leadership and Strategic Vision: Bridging Traditional Finance and Crypto

The appointment of Jan-Oliver Sell as CEO signals qivalis's intent to combine traditional banking rigor with crypto-native expertise. Sell's background at Coinbase, one of the world's largest cryptocurrency exchanges, provides critical insight into the digital asset market's mechanics, user expectations, and technological requirements. His experience navigating the German regulatory landscape will be invaluable for qivalis's pan-European ambitions.

Complementing this, the roles of Floris Lugt as CFO and Howard Davies as board chair bring deep institutional financial experience, risk management understanding, and high-level regulatory relationships. This leadership structure is designed to build credibility with both regulators and potential institutional users who may be cautious about engaging with purely crypto-native entities.

The stated plan is to launch the euro-backed stablecoin in the early second half of 2026. This timeline accounts for the regulatory licensing process, technology development, integration testing with member banks' systems, and ensuring full compliance with the forthcoming MiCA regulations for asset-referenced tokens (ARTs). The multi-year horizon underscores the complexity of launching a regulated financial instrument at this scale within the traditional banking system.

The Competitive Landscape: Challenging US Dominance

The primary motivation cited for qivalis is to counter the "overwhelming dominance of US digital-dollar systems." Currently, USDT (Tether) and USDC (Circle) dominate the stablecoin sector, serving as the primary on-ramps, off-ramps, and trading pairs across global cryptocurrency exchanges. Their dominance means that even euro-based crypto trading often occurs via EUR/USD fiat conversions into these dollar tokens.

This dynamic extends U.S. monetary policy influence into the digital economy and exposes European users to potential jurisdictional risks. The U.S. is actively seeking to cement this advantage through legislation like the proposed GENIUS Act, which aims to encourage dollar-backed token issuance to support U.S. monetary influence abroad.

qivalis aims to create a direct euro-denominated alternative that is native to the digital asset space. Success would provide European consumers, businesses, and financial institutions with a regulated digital euro option for payments, settlements, and as a base currency for trading pairs on exchanges. It represents a strategic attempt to ensure that the euro remains competitive in the future monetary system.

Regulatory Hurdles: MiCA, Central Banks, and National Divergence

qivalis's journey will be heavily shaped by the European regulatory environment. The cornerstone is the EU's Markets in Crypto-Assets (MiCA) regulation, which provides a comprehensive framework for crypto-asset service providers and issuers of asset-referenced tokens (the category covering stablecoins like qivalis's planned offering). MiCA mandates strict requirements on governance, reserve composition (full backing with low-risk assets), redemption rights, and disclosure.

However, significant hurdles remain beyond MiCA's text. A recent detailed analysis from Sveriges Riksbank, Sweden's central bank, highlighted systemic risks from widespread stablecoin adoption. The report warned that if households moved savings from insured bank deposits into private digital assets like stablecoins, it could lead to higher funding costs for traditional banks, tighter lending conditions, and upward pressure on mortgage and business-loan rates.

Furthermore, despite MiCA creating a legal path for stablecoins backed by central-bank reserves (like those qivalis may hold), access remains restricted. The European Central Bank (ECB) and national central banks currently limit issuer access to settlement accounts. They permit accounts for payment purposes but cap balances to operational necessities only. This policy blocks the formation of fully backed stablecoins that hold all reserves directly in central bank liquidity—a model many consider optimal for stability.

National political divergence also poses a challenge. In Poland recently, President Karol Nawrocki vetoed a bill intended to align national law with MiCA requirements. He argued it threatened civil freedoms through opaque domain-blocking powers and imposed fees that would harm small businesses. Such fragmentation slows progress toward a unified EU digital asset framework essential for ventures like qivalis to operate seamlessly across borders.

Broader Implications for European Finance and Crypto

The launch of qivalis is a bellwether event with implications extending beyond the stablecoin market itself.

First, it signifies that major incumbent banks are moving beyond exploratory pilots or custody services toward issuing their own native digital assets. This could accelerate the institutional adoption of blockchain-based settlement more broadly.

Second, it introduces a new category of competitor in the stablecoin space: bank-consortium issued tokens. These will compete not only with USDT/USDC but also with potential future offerings from other global banks and eventually, perhaps directly with a digital euro Central Bank Digital Currency (CBDC) currently being explored by the ECB.

Third, it tests the viability of public-private partnership models in digital currency. While qivalis is a private venture from commercial banks, its success is framed as a matter of European strategic interest. Its interaction with regulators and central banks will be closely watched as a template.

Finally, it places pressure on other regional financial hubs—in Asia, the Middle East, and elsewhere—to consider similar consortium models to promote their own currencies in digital form.

Conclusion: A Strategic Pivot Point for Europe

The formation of qivalis by ten major European banks marks a strategic pivot point. It is a direct response to both the competitive threat from U.S.-dominated private stablecoins and the strategic opportunity presented by Europe's own MiCA regulation. By aiming for a 2026 launch, the consortium is betting on regulatory clarity solidifying and market demand for a credible euro-denominated digital asset growing substantially.

For crypto readers and market participants, qivalis represents several key developments to watch:

• The progress of its EMI license application with Dutch authorities.
• The specific technical design choices (blockchain platform(s), interoperability features).
• The composition of its reserve assets.
• The partnerships it forms with exchanges and payment providers for distribution.
• Its engagement with ongoing policy debates regarding central bank account access.

While significant challenges related to regulation, technology integration, and market adoption remain ahead—and while cautionary analyses from institutions like Sveriges Riksbank highlight real risks—the launch of qivalis undeniably elevates the race for stablecoin relevance. It moves the conversation from "if" major banks will issue digital currencies to "how" they will do so collaboratively on a regional scale. The success or failure of this ambitious pan-European venture will provide critical lessons for the entire intersection of traditional finance and cryptocurrency globally