European Banks Form Qivalis Consortium to Launch Euro Stablecoin amid Digital Sovereignty Push

A consortium of 12 major European banks including ING, UniCredit, and BBVA is developing a MiCA-compliant euro stablecoin through Qivalis, aiming to close the gap between the euro’s 20–25% share of traditional global finance and its near-absence on blockchain networks, where euro-denominated transactions account for approximately 0.2% of activity.

The project, targeting launch in the second half of 2026 pending regulatory approval from the Dutch central bank, positions itself as a response to dollar dominance in crypto markets, warning that without a deep, liquid euro stablecoin, financial activity on blockchains will default to dollar-based tokens such as USDT and USDC.

Qivalis Aims to Establish Euro Stablecoin as Default Onchain Alternative to Dollar Dominance

Jan-Oliver Sell, CEO of Qivalis, stated that the absence of a euro with depth of liquidity onchain poses a real risk to Europe’s financial and digital sovereignty, as the only alternative in blockchain-based finance is the US dollar. Stablecoins have become central to global financial systems with a current market capitalization of approximately $314 billion, and Jefferies projections estimate the market could reach between $800 billion and $1.15 trillion within five years.

Sell noted that in traditional finance, the euro accounts for 20–25% of global activity as the world’s second reserve currency, but onchain its presence is almost nonexistent at 0.2% of transactions. Qivalis is designed to address fragmentation that has previously held back euro stablecoins, with Sell arguing that individual banks issuing their own coins would fragment the space further, whereas bringing institutions together creates the distribution and liquidity needed to make a euro stablecoin usable.

The consortium is building infrastructure to serve as the interface between blockchain and the euro, positioning itself as the default euro-denominated token for global crypto markets. Qivalis aims to be available wherever use cases emerge, competing with incumbent dollar stablecoins by building liquidity and integrating across exchanges, custodians, and decentralized finance platforms.

Digital Euro and Qivalis Serve Different Layers of Monetary Stack

The European Central Bank continues work on a digital euro, with ECB President Christine Lagarde stating the bank has finalized its part of the central bank digital euro and that political institutions must now act. The digital euro project, which aims to create a public digital means of payment, is under review by the European Council and the European Parliament, with a pilot exercise planned for 2027 and potential first issuance during 2029.

Sell described the two initiatives as complementary rather than competitive, forming different layers of what he called a “monetary stack.” Central bank money sits on centralized systems under the ECB’s digital euro plans, while blockchain-based use cases such as cross-border payments and onchain settlement require a euro-native asset on public networks. Qivalis will issue a private, MiCA-regulated stablecoin operating on public blockchains.

ECB Executive Board member Piero Cipollone and Supervisory Board Vice-Chair Frank Elderson recently argued that the digital euro is not a threat to banks but a strategic lifeline against big tech payment firms and stablecoins. The ECB warned that non-European card schemes currently process two-thirds of all euro area card transactions, with thirteen out of 21 euro area nations depending entirely on international card schemes or mobile solutions for in-store payments.

European Banks Face Structural Shift as Financial Activity Moves Onchain

Sell pointed to currency risk as a factor that could drive adoption of euro-denominated alternatives, noting that European users earning yield in dollars also face foreign exchange risk that can offset returns. As more financial activity moves onto blockchain rails, the absence of a widely adopted euro stablecoin could leave Europe structurally dependent on dollar-based infrastructure.

The ECB estimated total bank investment costs for the digital euro at between €4 billion and €5.8 billion, approximately €1 billion to €1.44 billion per year over four years. This represents roughly one-fifth of the costs projected by some external studies and approximately 3.4% of significant banks’ annual IT upgrade budgets.

Holding limits for individuals, a ban on corporate holdings, and the absence of interest on digital euro balances are designed to prevent destabilizing deposit outflows. The ECB’s analysis, based on bank data, found that the digital euro would not harm financial stability.

Sell stated that the goal is not to replace the dollar outright but to ensure the euro remains competitive in a rapidly evolving financial system, putting the euro back in its place as the second global reserve currency in the onchain space and putting the financial future back in European hands.

FAQ

What is Qivalis and which banks are involved?

Qivalis is a consortium-backed euro stablecoin project supported by 12 major European banks including ING, UniCredit, and BBVA. The project aims to issue a MiCA-compliant euro stablecoin targeting launch in the second half of 2026, pending regulatory approval from the Dutch central bank.

How does Qivalis differ from the European Central Bank’s digital euro?

Qivalis is a private, MiCA-regulated stablecoin designed for use on public blockchains, while the ECB’s digital euro is a public central bank digital currency that would operate on centralized infrastructure. The projects are described as complementary layers of a monetary stack, with Qivalis providing a euro-native asset for onchain use cases and the digital euro providing central bank money on centralized systems.

Why do European banks and policymakers see a euro stablecoin as urgent?

Euro-denominated transactions account for only 0.2% of blockchain activity compared to the euro’s 20–25% share of traditional global finance. Without a deep, liquid euro stablecoin, financial activity on blockchains defaults to dollar-based tokens such as USDT and USDC, raising concerns about Europe’s financial and digital sovereignty as more of the global financial system moves onto blockchain infrastructure.