A group of European banks backing a stablecoin project called Qivalis has swelled to 37 lenders, the initiative confirmed. The consortium plans to issue a euro-denominated stablecoin later this year, aiming to carve out a bigger role for the euro in tokenized finance and push back against the U.S. dollar’s dominance in the digital asset space.
Why the push for a euro stablecoin
The stablecoin market today is overwhelmingly dollar-based. Tether and USD Coin alone account for well over 100 billion tokens in circulation. European banks see that as a vulnerability — both for the region’s financial sovereignty and for the euro’s standing in cross-border payments and decentralized finance. Qivalis is their answer: a regulated, bank-backed token that could let institutions settle trades, move money, and interact with blockchain-based markets without relying on dollar-pegged assets.
From a handful of banks to 37
When Qivalis was first floated, it involved a small cluster of European lenders. Now that number has jumped to 37, signaling broad institutional appetite. The banks haven’t been named publicly, but the group includes both large and mid-sized institutions across several eurozone countries. The expansion suggests the project has moved beyond exploratory talks into active development — and that regulators are at least willing to let them try.
What Qivalis hopes to accomplish
The goal isn’t just to issue a stablecoin. It’s to build a pan-European infrastructure that can support tokenized securities, money-market funds, and even central bank digital currencies down the line. By issuing a euro stablecoin, Qivalis wants to give European firms a native digital currency that doesn’t require conversion into dollars for on-chain transactions. That would reduce costs and counterparty risk, and it could make the euro more attractive for international settlements.
The timing and the challenge
Qivalis plans to launch its stablecoin later this year, but the regulatory landscape remains uncertain. The European Union’s Markets in Crypto-Assets (MiCA) framework is set to take full effect in 2025, laying down rules for stablecoin issuers. Qivalis will have to comply with those rules, including reserve requirements and supervision by the European Banking Authority. That could slow things down, but it also gives the project a clear legal path — something its dollar-based rivals often lack.
The bigger question is whether a euro stablecoin can gain traction against the entrenched dollar-pegged tokens. Adoption will depend on liquidity, merchant acceptance, and whether European exchanges and DeFi protocols list it. The banks backing Qivalis have the balance sheets to provide that liquidity, but convincing the market to switch from dollar coins won’t happen overnight.
