The Qivalis Initiative

Ten European banks, including ING, UniCredit, and BNP Paribas, have established a joint venture named Qivalis with the objective of issuing a euro-pegged stablecoin. This initiative, unveiled during a press conference in Amsterdam, represents a significant and coordinated effort by European financial institutions to counter the dominance of the United States in digital payments and dollar-backed tokens. The new firm will be led by CEO Jan-Oliver Sell, who previously held a position at Coinbase in Germany. ING’s digital asset lead, Floris Lugt, will assume the role of CFO, and former NatWest chair Howard Davies will serve as chair. The consortium has stated that the stablecoin is intended for regulated financial markets, distinguishing it from the retail cryptocurrency sector. The original members of the consortium included ING, UniCredit, Banca Sella, KBC, DekaBank, Danske Bank, SEB, Caixabank, and Raiffeisen Bank International. BNP Paribas joined the effort later, adding another major eurozone institution to the project.

The Rise of Stablecoins and European Response

Stablecoins have emerged as a substantial segment within the cryptocurrency market. Tether's USDT, for instance, has approximately $185 billion in circulation and serves as the industry's de facto dollar. The rapid expansion of dollar-based tokens has also provided the United States with a competitive edge in global digital payments, a development that European policymakers and banks have been monitoring closely. This timing coincides with a surge of new activity in the U.S. Several prominent American financial firms are preparing to introduce their own fully regulated dollar stablecoins following President Donald Trump's signing of legislation that establishes national standards for fiat-backed tokens. European banks are keen to avoid falling behind as stablecoins transition from being mere crypto tools to becoming essential settlement infrastructure. Qivalis is designed to operate under European Union regulations, rather than adhering to crypto-native frameworks. The consortium has indicated that the token will be backed by cash or its equivalents and will be structured under the Electronic Money Institution rules applicable across the bloc.

Regulatory Framework for Qivalis

Qivalis is in the process of applying for an Electronic Money Institution (EMI) license from the Dutch central bank. The team anticipates that the licensing procedure will take between six to nine months, with a public launch scheduled for the second half of 2026. In contrast to many privately issued stablecoins, the Qivalis token will be governed by existing European e-money regulations, placing it within the traditional financial regulatory perimeter from its inception. This regulatory framework will also enable eurozone banks to integrate the token directly into their payment systems, treasury operations, and institutional settlement processes, eliminating the need for reliance on offshore issuers or non-EU intermediaries. Lugt informed reporters that the addition of BNP Paribas underscores the view among major European institutions that jointly issued stablecoins are a strategic imperative rather than a mere experiment.

Path Forward to the 2026 Launch

Currently, the consortium's immediate priorities include completing the licensing process and finalizing the underlying technical architecture for the token. The participating banks have not yet disclosed specific details regarding the chosen blockchain, custody arrangements, redemption mechanisms, or interoperability with existing financial infrastructure. However, the involvement of multiple regulated lenders suggests that the token may be primarily targeted towards interbank settlement, corporate payments, and cross-border transactions, rather than retail trading. With the EU's Markets in Crypto-Assets (MiCA) framework set to regulate stablecoins across the bloc, Qivalis will enter a regulated market that mandates strict backing, reporting, and operational transparency. While this may offer the consortium an advantage over offshore issuers, it also raises the compliance and daily operational standards. If successful, Qivalis has the potential to become the first euro stablecoin directly backed by major commercial banks, serving as a test case for the European financial system's ability to offer a digital alternative to dollar-dominated stablecoins without depending on external platforms.