European banks plan to issue euro stablecoin
A consortium of ten European banks is stepping up its efforts to develop a stablecoin pegged to the euro in response to the growing dominance of US-issued digital tokens.
First announced in September, the project initially involved nine banks, including ING and KBC. On Tuesday, the group announced that it had expanded to include BNP Paribas, a French bank.
The banks have incorporated the venture as Qivalis, which is headquartered in Amsterdam. Qivalis is seeking authorisation from the Dutch central bank to operate as an Electronic Money Institution.
Free and transparent
Stablecoins, which are digital tokens backed by traditional currencies or government debt, have grown rapidly in recent years. They can be used in blockchain-based financial services or for cross-border payments.
Currently, the United States dominates the market, with most activity conducted in dollars. Qivalis aims to use its new digital currency to challenge this dominance. They see great potential in sectors such as tourism, where billions of cross-border transactions occur annually.
"The stablecoin costs nothing and is highly transparent," the banks said on Tuesday. By collaborating on this initiative, European banks can achieve maximum interoperability with existing payment systems.
Launch in 2026
Jan-Oliver Sell, formerly of Coinbase Germany, will lead Qivalis as CEO. ING’s Floris Lugt has been appointed chief financial officer and former NatWest chair Sir Howard Davies will serve as chair of the board.
The consortium expects to complete the licensing process within six to nine months, planning to launch in the second half of 2026. If approved, the token will be used for cross-border payments and the settlement of financial transactions.
The other participants in the initiative are Deka, Caixabank, Raiffeisen Bank, SEB, Danske Bank, Unicredit and Sella.
© PHOTO KIRILL KUDRYAVTSEV / AFP
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