European Banks Unite Behind Euro-Pegged Stablecoin Initiative

A growing number of European banks are turning their attention to stablecoins, with a consortium expanding its membership to include 25 new financial institutions. The Qivalis initiative, which is developing a euro-pegged stablecoin, now has a total of 37 members across 15 countries.

The move reflects concerns among European lenders about the dominance of US dollar-backed stablecoins in digital payments and tokenized finance. Major lenders such as ING, BNP Paribas, and BBVA are already part of the consortium, which is positioning itself to address the growing demand for blockchain-based settlement systems.

The project's goal is to develop a euro-pegged stablecoin that can be used for a range of financial applications, including tokenized assets such as bonds, deposits, and real estate. However, the initiative faces a significant challenge: euro stablecoins have yet to achieve meaningful adoption, with only around €105.6m in circulation compared to the scale of dollar stablecoins.

The timing is notable, as regulators in both Europe and the US move closer towards clearer stablecoin frameworks, increasing competition over who will control the next generation of digital payment infrastructure.