EU Banks Launch Stablecoin Initiative to Promote European Financial Autonomy

A consortium of 12 major EU banks is working on a euro-pegged stablecoin called Qivalis, which is expected to debut in the second half of this year. The initiative aims to provide a European alternative to US-dominated stablecoins and contribute to the EU's strategic autonomy in payments.

The group, led by ING, UniCredit, BNP Paribas, CaixaBank, and BBVA, wants to ensure that Qivalis is available on regulated trading platforms from day one to guarantee liquidity. To achieve this, they are in advanced discussions with crypto exchanges, market makers, and liquidity providers.

The stablecoin will be backed 1:1 by high-quality, short-term euro-area sovereign bonds, with at least 40% of the reserves held in bank deposits. The consortium is seeking authorization from the Dutch central bank under the EU's Markets in Crypto-Assets (MiCA) framework.