European Banks to Launch EU-Compliant Euro Stablecoin by 2026

Nine major banks in Europe have formed Qivalis in Amsterdam to launch a MiCA-compliant Euro stablecoin, aiming for 2026 release to enhance regional payment sovereignty.

This move challenges U.S.-dominated stablecoins, aiming to bolster Europe’s financial autonomy, reduce transaction costs by 40%, and project €50 billion liquidity by 2027.

European Banks Target €50 Billion Liquidity Market by 2027

Qivalis, led by nine European banks, has been registered in Amsterdam and aims to issue a Euro stablecoin. This collaboration intends to provide an alternative to U.S. dollar stablecoins, enhancing Europe’s payment sovereignty.

The project seeks to offer instant, low-cost cross-border payments and optimize digital asset settlement, challenging U.S. dollar-pegged stablecoins. Targeting a €50 billion liquidity market by 2027, it aims to reduce Europe’s reliance on dollar assets.

Reactions have been aligned with policy support; Qivalis receives backing from the European Banking Federation, and Dutch regulatory bodies have shown confidence in the effort. Industry experts recognize the project’s geopolitical significance but highlight that competitive pressures may follow.

MiCA Compliance Spurs Technological Advances in EU

Did you know? The European stablecoin, Qivalis, aligns with a strategy seen in historical central bank initiatives for digital currencies. It mimics the regulatory approach of central banks’ digital efforts to reduce reliance on foreign currencies.

CoinMarketCap data shows Tether USDt (USDT) maintains a 5.90% market dominance, with a market cap of $184.72 billion. The stablecoin sees steady prices, with a 23.19% change in 24-hour trading volume totaled at $127.59 billion as of the last update.

Coincu Research Insights highlight the potential effect of Qivalis introducing a MiCA-compliant stablecoin. It might stimulate technological advancements and regulatory frameworks in the EU, paving the way for enhanced Eurozone digital asset strategies.