European banks form group to launch euro-pegged stablecoin

A consortium of 10 European banks has established a company called Qivalis to launch a euro-pegged stablecoin, according to an announcement from the group. The initiative aims to provide an alternative to U.S. dollar-dominated digital payment systems.

Summary

• Major European banks have formed a consortium called Qivalis to launch a euro-pegged stablecoin, aiming to counter U.S. dollar dominance in digital payments.
• The token is expected to launch in H2 2026, pending regulatory approval, with former Coinbase Germany CEO Jan-Oliver Sell as CEO and ex-NatWest chair Howard Davies as chair.
• The stablecoin will initially target crypto trading and payments, as regulators and the ECB weigh concerns over private stablecoins’ impact on banks and monetary policy.

The participating banks include BNP Paribas, ING, UniCredit, Banca Sella, KBC, DekaBank, Danske Bank, SEB, Caixabank and Raiffeisen Bank International. BNP Paribas joined the consortium after the initial announcement, according to the group.

The token is expected to launch in the second half of 2026, pending regulatory approval and licensing, the consortium stated.

Jan-Oliver Sell, former CEO of Coinbase Germany, will serve as chief executive of Qivalis, with Howard Davies, former chair of NatWest, appointed as chair. The Amsterdam-based firm plans to hire 45 to 50 employees over the next two years, with one-third of positions already filled, according to the company.

The stablecoin will initially focus on cryptocurrency trading, offering near-instant, low-cost payments and settlements, with plans to expand use cases later, the consortium said.

The initiative comes as stablecoins have experienced rapid growth, particularly U.S. dollar-backed tokens such as Tether. Euro-pegged alternatives remain limited in the market. Societe Generale’s SG-FORGE currently has 64 million euros in circulation, according to available data.

Regulators, including the European Central Bank, have raised concerns that private stablecoins could divert funds from regulated banking institutions and affect monetary policy. Qivalis is seeking an Electronic Money Institution license from the Dutch central bank and has engaged with the ECB, which expressed support for a European-led solution to ensure strategic autonomy in payments, according to sources familiar with the discussions.

A separate group of banks in Europe and the United States is also exploring stablecoin issuance, reflecting growing institutional interest in digital currencies, according to industry reports.