European banks move to launch a regulated euro stablecoin as policymakers push to reduce dollar dominance.
European banks are moving closer to launching a regulated euro-backed stablecoin as competition with dollar-based tokens intensifies. A group of 12 institutions has now selected infrastructure partners and outlined a timeline. Regulatory alignment under MiCA remains central to the effort. Approval from Dutch authorities will determine the final rollout window.
Qivalis Targets 2026 Launch of Regulated Euro Stablecoin With Fireblocks Support
A consortium led by Qivalis has chosen digital asset infrastructure provider Fireblocks to support its planned euro stablecoin. The initiative targets institutional use cases, including settlement, treasury operations, and tokenized assets.
Fireblocks will supply tokenization systems, wallet infrastructure, and custody services. Compliance tools such as identity checks and sanctions screening are also part of the setup. These components aim to align the project with the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Qivalis, established in 2025 in the Netherlands, is backed by major banks including BBVA, BNP Paribas, ING, and UniCredit. The group plans to issue a fully regulated euro token backed 1:1 with reserves. It will operate under an electronic money institution structure supervised by De Nederlandsche Bank. A launch is expected in the second half of 2026, pending regulatory approval.
Policymakers Step Up Plans to Counter Dollar Reliance
Pressure to develop euro-denominated stablecoins has increased as dollar-backed tokens dominate the market. Data from DeFiLlama places global stablecoin capitalization near $320 billion. Around 99% of that supply is tied to the US dollar, leaving minimal room for euro-based alternatives.
Image Source: DeFiLlama
European policymakers and banks are pushing to reduce reliance on dollar-linked digital assets in payments and settlements. Recent regulatory commentary has added urgency. The Bank for International Settlements has warned that some dollar stablecoins behave more like investment instruments due to their reliance on short-term securities.
BIS general manager Pablo Hernández de Cos recently called for stronger global coordination on stablecoin oversight. At the same time, Bank of France deputy governor Denis Beau urged limits on non-euro stablecoins in everyday payments.
Stephen Richardson, chief strategy officer at Fireblocks, described the project as a regulated euro-native settlement tool designed for institutional adoption. The structure aims to provide a credible alternative to existing dollar-based options while meeting European regulatory standards.
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