A consortium of European banks building a regulated euro stablecoin has more than tripled its membership to 37 institutions, signaling an accelerated push to challenge the dominance of U.S. dollar-backed tokens in the digital asset market.
"This infrastructure is essential if Europe is to compete in the global digital economy whilst preserving its strategic autonomy," said Howard Davies, chairman of Qivalis' supervisory board, in a statement.
The initiative, named Qivalis, announced Wednesday that 25 new lenders, including heavyweights like ABN AMRO, Rabobank, Intesa Sanpaolo, Nordea, and Ireland's AIB and Bank of Ireland, have joined the effort. The expansion brings the consortium's footprint to 15 European countries, up from its initial base. The group plans to launch its euro-backed stablecoin in the second half of 2026, subject to regulatory approval.
The move comes as European institutions seek to increase the euro's role in the burgeoning world of tokenized finance. Currently, U.S. dollar-denominated stablecoins account for about 99% of the global stablecoin market, which has a total capitalization of approximately $318 billion, according to data from CoinGecko. In contrast, the euro stablecoin market is valued at just €770 million. A stablecoin is a type of digital asset designed to maintain a stable value by being pegged to a real-world asset, such as a fiat currency.
Qivalis aims to create a native European payment rail that operates under the EU's new Markets in Crypto-Assets (MiCA) framework, a comprehensive set of rules governing digital assets. The consortium is seeking an electronic money institution (EMI) license from the Dutch central bank to operate.
"The euro is Europe's currency, and on-chain financial infrastructure should carry it - built by European institutions and governed by European rules," said Qivalis CEO Jan-Oliver Sell.
The project represents a direct effort by traditional financial institutions to build a regulated alternative to dominant stablecoins like Tether's USDT and Circle's USDC. By creating a fully-backed, MiCA-compliant stablecoin, the member banks aim to provide a trusted settlement asset for on-chain trading and cross-border payments, potentially capturing a significant share of a market that S&P Global Ratings projects could grow to 1.1 trillion euros by 2030.
"This is a practical step for AIB to learn, innovate, test and collaborate with other leading European banks, and to help shape how new forms of digital money can be used safely, responsibly and within the regulated banking system," said Geraldine Casey, managing director of retail banking at AIB.
This article is for informational purposes only and does not constitute investment advice.
