Ten top European banks have suddenly joined forces to shake things up. Established financial institutions like BNP Paribas and ING have teamed up to launch the Qivalis platform, planning to roll out a compliant euro stablecoin in 2026. On the surface, this looks like a simple product launch, but in reality, it’s a battle to defend sovereignty against the dominance of dollar stablecoins.

**Why are traditional banks only now getting anxious?**

Simply put, they've been pushed to the edge. The European Central Bank has long warned that the proliferation of dollar stablecoins in Europe could turn the eurozone into a "digitally dollarized" colony—losing both monetary sovereignty and control over financial data. What stings even more is that in recent years, European banks have fallen far behind their American counterparts in terms of innovation and market capitalization. The Qivalis project is less of an offensive move and more of a defensive measure by the traditional financial system to reclaim dominance over payment rails and data.

**Is USDT really worried?**

Not in the short term. USDT has built an overwhelming network effect thanks to its first-mover advantage—holding about 99% of the stablecoin market cap, with global traders already accustomed to its high-liquidity trading pairs. Forcing people to switch is like asking Beijing residents to give up Alipay for another payment tool—easier said than done.

But looking three to five years ahead, Qivalis is targeting USDT’s Achilles’ heel: **regulatory compliance and sovereign backing**. The EU holds the powerful MiCA regulation card, which allows it to greenlight compliant euro stablecoins at home while setting up all sorts of hidden barriers for noncompliant products. Using policy to steer the market has proven effective time and again in traditional finance.

**The rules of the game are changing**

The biggest significance of Qivalis’s entry isn’t whether it can dethrone USDT, but that it represents a shift in the rules of the game—from the “wild growth” mindset of the crypto world to the “licensed access” approach of traditional finance. Regulators, central banks, and legacy banks—the establishment—are redefining what counts as a “legitimate stablecoin.” Understanding these changing rules is far more important than betting on the rise or fall of any particular token.