Qivalis, an Amsterdam-based banking consortium, has doubled down on its bet that European banks can build a stablecoin alternative to the US dollar-dominated market. The group added 25 new financial institutions across 15 countries this week, bringing its membership to 37 banks—a sign that institutional appetite for a regulated euro stablecoin is strengthening despite skepticism from the European Central Bank.
The new members include major European lenders: ABN AMRO and Rabobank from the Netherlands, Sweden’s Nordea, and Italy’s Intesa Sanpaolo. Spain led the expansion with five new banks joining, including ABANCA, Banco Sabadell and Bankinter. France, Greece, Finland and Ireland each added two members, suggesting the initiative has gained traction across both northern and southern Europe.
“We are not merely building payment rails; we are ensuring that European principles around data protection, financial stability and regulatory rigour are embedded into the next generation of digital money,” said Howard Davies, chairman of Qivalis’ supervisory board, in a statement shared with CoinTelegraph.
Market Context: Dollar Stablecoins Still Dominant
The expansion reflects a broader anxiety in European financial institutions. Dollar-backed stablecoins—principally USDC and Tether—account for 98% of the stablecoin market by some measures, according to CoinGecko. That concentration leaves euro-denominated finance dependent on US-issued digital currencies, a structural dependency that regulators and banks have increasingly viewed as strategically problematic.
Qivalis is positioning itself as the answer. The consortium is building infrastructure under the EU’s Markets in Crypto-Assets (MiCA) framework, the bloc’s comprehensive digital asset regulation that came into force in December 2023. The group targets a second-half 2026 launch, and in March selected Fireblocks for tokenization, wallet infrastructure and custody services.
The ECB’s Skeptical Stance
The timing is delicate. European Central Bank President Christine Lagarde said in early May that stablecoins are not Europe’s best route to strengthening the euro’s international role—a public pushback against those calling for private alternatives to dollar stablecoins.
Yet Qivalis and similar banking-led initiatives continue to gain institutional backing. The distinction matters: the ECB may be hesitant about private stablecoins as a tool for euro internationalization, but European banks clearly see a regulated, consortium-based stablecoin as a way to modernize domestic payment infrastructure and reduce reliance on foreign issuers.
Jan Sell, Qivalis CEO, framed the project explicitly in those terms: “The euro is Europe’s currency, and on-chain financial infrastructure should carry it—built by European institutions and governed by European rules.”
Retail Adoption Already Emerging
Early signals suggest demand exists. Spain has emerged as a leading retail market for Circle’s EURC, a euro stablecoin already in circulation, according to data from Brighty. That adoption suggests European consumers are ready to use euro-denominated digital money, even before a fully regulated consortium-backed option launches.
The Qivalis expansion reflects a calculated bet that European banks can move faster than regulators’ official positions might suggest. Whether they can deliver a competitive product by 2026—and whether it will gain meaningful adoption against entrenched dollar alternatives—remains an open question.