A consortium of 10 banks is set to introduce a euro-pegged stablecoin in 2026, operating under an entity authorized by the Dutch Central Bank.
BNP Paribas announced on Tuesday that it would join nine other EU-based banks in an initiative to launch a euro-backed stablecoin, with the planned release in the second half of 2026. The Amsterdam-based entity, named Qivalis, will introduce a stablecoin that complies with the region’s Markets in Crypto-Assets (MiCA) framework, pending regulatory approval.
Qivalis CEO Jan-Oliver Sell stated, "A native euro stablecoin isn't just about convenience — it’s about monetary autonomy in the digital age. Presenting new opportunities for European companies and consumers to interact with onchain payments and digital asset markets in their own currency."
This development towards a significant euro-pegged stablecoin occurs as US regulators are preparing to implement a law that will establish a framework for payment stablecoins within the country. The bill, known as the GENIUS Act, was signed into law by US President Donald Trump in July.
In parallel with the EU banks' efforts, Dutch Central Bank Governor Olaf Sleijpen has reportedly cautioned about potential risks to monetary policy as the stablecoin market continues to expand. The European Central Bank (ECB) published a report in November indicating that while the risks associated with stablecoins were likely limited, their "rapid growth justifies close monitoring."
According to ECB adviser Jürgen Schaafhe, euro-denominated stablecoins had a market capitalization of less than 350 million euro, approximately $407 million at the time of the report. This figure represented less than 1% of the global stablecoin market as of July.
Tether Withdraws from EU Stablecoin Market
Stablecoin issuer Tether ceased redemptions for its euro-pegged coin, EURt, on November 25. This decision followed approximately one year after the company announced it would discontinue support for the token. Tether cited the EU's MiCA regulations as the basis for its decision, with CEO Paolo Ardoino asserting that these regulations posed risks for stablecoins.