A consortium of 37 banks from 15 countries plans to launch a euro-denominated stablecoin called Qivalis in the second half of this year. The move aims to carve a slice of the $322.1 billion global stablecoin market, where dollar-pegged tokens currently account for more than 82% of all supply.
The euro stablecoin gap
Euro-denominated stablecoins today are a rounding error. Combined, EURC and EURCV total just $572 million — a mere 0.18% of the global stablecoin market. By contrast, Tether’s USDT alone sits at $189.6 billion and Circle’s USDC at $76.3 billion. That disparity mirrors official currency reserves: data from the International Monetary Fund’s COFER survey shows the euro holds 20.25% of global foreign-exchange reserves, while the dollar commands 56.77%. Qivalis backers see an opening to match that 20% share in stablecoins, but they're starting from near zero.
Regulatory tailwind from MiCA
The European Union’s Markets in Crypto-Assets regulation gives Qivalis a compliance advantage. Under MiCA, euro stablecoins issued by regulated entities can operate across all member states without needing separate national licenses. That means Tether — which is not licensed under MiCA — and other unregistered issuers face an uncertain path to serve EU clients. Qivalis, backed by a group of banks that are already regulated, can roll out in all 27 countries at once.
Usage beyond trading
Stablecoins today are overwhelmingly used as trading collateral, not for payments. The Kansas City Fed estimates that 48.8% of stablecoins serve as trading assets as of November 2025, while traditional payments account for only 0.7% of usage. Qivalis hasn’t publicly stated its target use case, but a bank-backed euro stablecoin could aim for cross-border payments or settlement between financial institutions — areas where the current euro stablecoin supply is nearly invisible.
Dollar dominance and the GENIUS Act
The White House’s GENIUS Act, which requires stablecoin issuers to back their tokens with dollars and Treasury bills, reinforces the dollar’s grip. European Central Bank President Christine Lagarde noted that $3.5 billion inflows into dollar stablecoins can lower three-month Treasury bill yields by 2.5 to 3.5 basis points — a signal that stablecoin demand already influences U.S. money markets. Meanwhile, JPMorgan projects the stablecoin market will reach $500 billion by the end of 2028, implying 18.6% annualized growth from today’s $322.1 billion base.
Whether Qivalis can capture any of that growth depends on whether euro stablecoins can overcome the network effects of USDT and USDC. The consortium has the regulatory green light and a banking infrastructure that unlicensed issuers lack. But it will need to convince users — traders and payment companies alike — that a euro token is worth switching to. That pitch gets easier if the dollar’s dominance in reserves and stablecoins starts to slip. So far, it hasn’t.
