Qivalis Boosts Euro Stablecoin Consortium to 37 Banks Amidst Digital Payment Push
Qivalis, a European stablecoin initiative, has broadened its consortium to 37 banks, adding 25 new members from 15 different countries. This increased membership highlights the commitment of European lenders to develop a regulated digital payment infrastructure based on the euro.
The consortium is aiming to create a stablecoin that complies with the Markets in Crypto-Assets (MiCA) framework, providing a viable alternative to the prevalent US dollar stablecoins, such as those issued by Tether and Circle. With these dollar-pegged stablecoins controlling a substantial chunk of the market, their total supply has exceeded US$301 billion (approximately AU$421.4 billion). In contrast, euro-backed stablecoins represent a relatively minor segment, with Circle’s EURC holding the title for the largest euro stablecoin, valued at US$443 million (about AU$620.2 million).
Plans for Launch and Regulatory Approval
Based in Amsterdam, Qivalis is targeting a launch in the latter half of 2026. The organisation is actively seeking approval from the Dutch central bank to function as an electronic money institution. The proposed stablecoin will be backed one-to-one by euros and liquid assets maintained with regulated custodians.
The initiative arises from growing apprehensions within European financial circles regarding the dominance of US dollar stablecoins, prompting a collective move towards establishing a euro-based digital currency that is both secure and compliant with financial regulations.
The Role of the MiCA Framework
Qivalis believes that its expanding consortium is crucial for laying down the groundwork to construct regulated euro-denominated payment systems and on-chain settlement infrastructure in alignment with the MiCA framework. Jan-Oliver Sell, the CEO of Qivalis, emphasised that the focus of the consortium is on enhancing European financial sovereignty. The aim is not to disrupt existing payment infrastructure but rather to improve cross-border payments and facilitate instant settlement systems.
However, despite the strong push from the consortium’s member banks, European Central Bank (ECB) President Christine Lagarde has voiced skepticism regarding whether private stablecoins are the optimal method for bolstering the euro’s influence on the global stage.
This ambitious initiative encapsulates the growing momentum behind the need for a regulated European stablecoin, reflecting broader trends in the evolving digital finance landscape. As the project progresses, it will be interesting to see how these efforts contribute to reshaping payment systems in Europe and potentially challenge the existing power of US dollar-dominated stablecoins.
In conclusion, Qivalis is making significant strides toward operationalising a euro-backed stablecoin, with firm backing from major European banks, creating a potential game-changer in digital currency and payments within Europe.
