37 European Banks Now Back a Euro Stablecoin to Rival the Dollar

Global · Fintech & Payments

In the world of digital money, the dollar has been winning without a real contest. Nearly every stablecoin in circulation is pegged to the greenback, extending its reach into a new financial layer. Now 37 European banks are trying to change that, building a single euro coin to keep the continent’s money, and its rules, on-chain, a fight whose outcome echoes far beyond Europe.

What is the euro stablecoin project?

The Rio Times, the Latin American financial news outlet, reports that the euro stablecoin being built by the Qivalis consortium just gained major scale, adding 25 banks including Spain’s Sabadell and Bankinter to reach 37 institutions across 15 countries. The Amsterdam-based venture plans a token pegged one-to-one to the euro, with a first issuance targeted for the second half of 2026.

The membership reads like a roll call of European finance. Alongside the new entrants sit ING, BNP Paribas, BBVA, UniCredit, CaixaBank, ABN AMRO, Rabobank, Nordea and Intesa Sanpaolo. Spain emerged as the most represented country in the latest wave, adding five lenders, reflecting strong early adoption of euro stablecoins in that market.

How will the token work?

As a fully regulated, fully backed instrument. The coin will comply with the European Union’s Markets in Crypto-Assets regulation, known as MiCA, which sets strict rules on reserve quality, disclosures and redemption rights. Qivalis is seeking authorization from the Dutch central bank to operate as an electronic-money institution, the regulatory route at the heart of its pitch.

The backing is conservative by design. Each token will be supported one-to-one by reserves, with at least 40% held in bank deposits and the remainder in high-quality euro-area government bonds, so holders can always redeem at face value. Working with infrastructure partner Fireblocks, the consortium aims to enable near-instant cross-border payments around the clock and the automated settlement of tokenized assets like bonds.

Why does the dollar dominate stablecoins?

Because it got there first and at scale. Dollar-linked tokens account for roughly 98% of a stablecoin market worth more than $290 billion, while euro-denominated coins represent just 0.2%, even though the euro makes up 20% to 25% of global currency transactions. That mismatch is the gap Qivalis is trying to close.

The concern is strategic, not just commercial. European policymakers worry that a payments layer built almost entirely on dollar stablecoins deepens dependence on US-centric financial rails. As Qivalis chief executive Jan-Oliver Sell put it, the euro is Europe’s currency, and on-chain infrastructure should carry it, built by European institutions and governed by European rules.

Why does this matter for Latin America?

Because the region is where the dollar-stablecoin trend is most visible. In countries like Argentina, Colombia and Venezuela, savers increasingly hold dollar-pegged tokens as a hedge against weak local currencies, a phenomenon often called digital dollarization. A credible euro alternative could, over time, offer a second hard-currency option for remittances and savings in markets with deep European ties.

The near-term effect is more about the rails than the coin. Two of the consortium’s biggest members, Spain’s BBVA and CaixaBank, are also among the largest banks in Latin America, giving the project a natural bridge into the region’s payment systems. If a regulated euro stablecoin scales, it could eventually plug into the same cross-border corridors that crypto is already reshaping.

What should investors and analysts watch next?

• Dutch regulatory approval: Qivalis still needs an e-money license from the Dutch central bank before it can launch.
• The H2 2026 launch: whether the consortium hits its second-half target is the key execution test.
• The ECB’s stance: Lagarde’s skepticism signals possible friction between bank-led stablecoins and the central bank’s own digital-euro plans.
• Member growth: further additions would strengthen the network effects needed to challenge dollar coins.
• LatAm bank bridges: how BBVA and CaixaBank deploy the token in their Latin American operations is the clearest regional signal.

Frequently Asked Questions

What is the Qivalis euro stablecoin?

It is a euro-pegged digital token being built by Qivalis, an Amsterdam-based consortium now numbering 37 European banks. Designed to comply with the EU’s MiCA regulation and backed 1:1 by reserves, it aims to launch in the second half of 2026 as a regulated alternative to dollar stablecoins.

Which banks are involved?

Members include ING, BNP Paribas, BBVA, UniCredit, CaixaBank, ABN AMRO, Rabobank, Nordea and Intesa Sanpaolo, plus new entrants Sabadell and Bankinter. Spain is the most represented country, adding five lenders in the latest expansion to 37 institutions across 15 nations.

How is it backed?

The token will be backed one-to-one, with at least 40% of reserves in bank deposits and the rest in high-quality euro-area government bonds. This ensures holders can always redeem at face value, in line with MiCA’s strict rules on reserve quality and redemption rights.

Why challenge dollar stablecoins?

Dollar-linked coins make up about 98% of the over-$290-billion stablecoin market, while euro coins are just 0.2%. European banks and policymakers worry this deepens reliance on US financial rails, and want a regulated euro option that keeps the continent’s money and rules on-chain.

How could it reach Latin America?

Two of the consortium’s biggest members, BBVA and CaixaBank, are among the largest banks in Latin America, providing a natural bridge. A regulated euro stablecoin could eventually offer a second hard-currency option for remittances and savings in a region already embracing dollar-pegged tokens.

Connected Coverage

The dollar-stablecoin trend the euro coin aims to counter is detailed in our reporting on how Colombia is embracing stablecoins as a digital dollar, and on how Argentinians turned to crypto for dollars amid a peso crisis. The institutional build-out is tracked in our piece on how Ripple called Brazil its top stablecoin market.

Reported by Sofia Gabriela Martinez for The Rio Times — Latin American financial news. Filed May 20, 2026 — 16:30 BRT.