Twelve European banks plan euro stablecoin launch in 2026 under MiCA rules with 1:1 backing, bank reserves, and 24/7 redemption.
A coalition of major European banks plans to introduce a regulated euro stablecoin in 2026. The project will run through a new Amsterdam based entity called Qivalis. Importantly, the initiative is intended to help solidify Europe’s digital payment infrastructure, and make Europe less reliant on dollar-backed tokens.
European Banks Form Qivalis to Develop Regulated Euro Stablecoin
The project includes twelve financial institutions from all over Europe. Major participants are BNP Paribas, ING, UniCredit, CaixaBank and BBVA. These banks joined previous members such as Danske Bank, SEB, Raiffeisen Bank International, Banca Sella, KBC and DekaBank.
The Qivalis alliance of 12 major European banks is advancing a euro stablecoin, targeting launch in the second half of 2026. Members include CaixaBank, BNP Paribas, ING, UniCredit, and BBVA. The coin will be 1:1 pegged to the euro, with at least 40% of reserves in bank deposits…
— Wu Blockchain (@WuBlockchain) March 2, 2026
The initiative is available through the Qivalis entity based in Amsterdam. The leadership consists of CEO Jan-Oliver Sell and CFO Floris Lugt. Sell previously worked at Coinbase Germany and brings digital asset industry experience to the project.
The stablecoin will be governed by the same regulatory framework as in Europe, the Markets in Crypto-Assets Regulation. This rule requires strong reserve transparency and consumer safeguards. Therefore, the participating banks believe that the structure will attract institutional users.
European policymakers increasingly concerned about reliance on dollar-linked stablecoins. According to current data, dollar-pegged tokens account for roughly 99.58% of the global market of stablecoins. Meanwhile, euro-pegged alternatives are still small with about $649 million in circulation.
As a result, the goal of the Qivalis project is to increase the amount of euro-denominated digital liquidity. Banks believe the token could be used to help support regional payments and trading of digital assets. Furthermore, the initiative might boost Europe’s financial independence in the digital spaces.
The consortium had nine founding banks when the project started. However, more institutions joined up through early 2026 as interests grew. Notably, BBVA joined the alliance after having abandoned its independent stablecoin initiative.
The expansion is a sign of increased confidence in traditional lenders about blockchain payment systems. Moreover, the project shows the growing cooperation between the European banks in the field of digital finance infrastructure.
Stablecoin Design Focuses on Reserves, Settlement, and Digital Payments
The proposed stablecoin will have a strict reserve model with a direct link to the euro. Each token will be pegged at a 1:1 fixed value against the euro currency. This structure is to ensure price stability and confidence on the part of the users.
According to the design plan, at least 40% reserve will remain in bank deposits. Meanwhile, the other part will be made of highly rated short-term eurozone sovereign bonds. This reserve mix is intended to balance liquidity by providing for good credit quality.
In addition, the stablecoin will have continuous 24/7 redemption capabilities. Users will be able to turn the tokens back into euros at any time. Therefore, the model tries to reflect the reliability of conventional bank deposits.
The token also aims at improving cross-border payment efficiency. Traditional international transfers often involve delays and high settlement costs. In comparison, blockchain transactions can be almost instant.
Also, the stablecoin might have programmable payment features. Smart contracts may facilitate automated financial operations across digital platforms. These features may facilitate future financial services and on-line commerce tools.
Euro Stablecoin Could Arrive Before ECB Digital Euro Launch
Banks also intend to look for transactions through machines, via connected devices. Internet-connected systems may one day be able to automatically process payments based on programmable tokens. As a consequence, the project can serve emergent use cases of the machine economy.
Another important application is for digital asset markets and trading platforms. The stablecoin could function as a settlement currency for tokenized assets and crypto trading pairs. Therefore, it might bring reliable on-chain liquidity for financial markets in Europe.
Meanwhile, the Qivalis launch timeline seems faster than the European central bank’s digital currency project. The European Central Bank is currently planning the roll out of its digital euro no sooner than 2029.
The consortium has already begun talks with crypto exchanges and liquidity providers. These talks are aimed to provide a strong market adoption as soon as the product is launched. Additionally, partnerships may enable the stablecoin to integrate with the existing digital trading infrastructure.
Furthermore, the project may be strategically important to Europe’s wider digital finance transformation. The governments and regulators are becoming supportive of blockchain-based payment systems across the region. As a result, regulated stablecoins may add to existing banking services.
Finally, the Qivalis initiative calls attention to accelerating institutional involvement in digital assets. European banks now actively explore blockchain infrastructure for payments, settlement, and asset tokenization. Consequently, the euro stablecoin could prove to be a major step towards the modernization of financial systems in Europe as a whole.