European banks unite to create regional stablecoin network

A growing concern among European lenders about the influence of US-controlled stablecoin networks has led to the expansion of the Qivalis consortium, which is developing a euro-pegged stablecoin. The addition of 25 new banks brings the total membership to 37 financial institutions across 15 countries.

Qivalis' project aims to create an on-chain financial infrastructure that carries the euro, built by European institutions and governed by European rules. This regional approach is a response to the dominance of dollar-backed stablecoins in global finance, with Tether's USDT and Circle's USDC accounting for the vast majority of global stablecoin liquidity.

The consortium is positioning its project as a long-term solution for tokenized assets, where instruments such as bonds, deposits, and real estate could move across blockchain-based settlement rails. This would give stablecoin issuers significant influence over future payment and settlement infrastructure.