Group of EU banks pushes for a euro-pegged stablecoin by 2027

A group of ten European banks is working towards the launch of a euro-pegged stablecoin, aiming for implementation in the second half of 2026. This initiative is spearheaded by an entity named Qivalis, which is seeking regulatory approval from the Dutch Central Bank. BNP Paribas announced its participation in this effort alongside nine other EU-based banks.

Ten EU Banks Collaborate to Launch Euro-Pegged Stablecoin by 2026

The formation of Qivalis represents a significant step in the European financial landscape, with the banks collectively looking to create a stablecoin that will be compliant with the region’s Markets in Crypto-Assets (MiCA) framework. This regulatory compliance is crucial for ensuring that the stablecoin operates within established legal boundaries.

Stablecoin to Comply with EU's Markets in Crypto-Assets Regulations

Jan-Oliver Sell, the CEO of Qivalis, emphasized that the introduction of a native euro stablecoin is not merely about enhancing convenience. He stated that it is fundamentally about achieving monetary autonomy in the digital era. The stablecoin is expected to provide new avenues for European businesses and consumers to engage with on-chain payments and the digital asset market using their own currency.

Stablecoin Initiative May Affect EU Monetary Policy and Economy

This development comes at a time when US regulators are also moving to establish a framework for payment stablecoins, following the signing of the GENIUS Act by the US President. As the stablecoin market expands, concerns have been raised about potential risks to monetary policy. Dutch Central Bank Governor Olaf Sleijpen has voiced these concerns, while the European Central Bank (ECB) has indicated that while risks associated with stablecoins appear limited, the rapid growth of the market necessitates careful monitoring.

Tether Withdraws from the Euro-Stablecoin Market, Citing Regulatory Risks

Amid these developments, Tether, a well-known stablecoin issuer, announced on November 25 that it would cease redemptions for its euro-pegged stablecoin, EURt. This decision follows Tether's earlier announcement about discontinuing support for the coin, attributing the move to the regulatory challenges posed by the EU's MiCA framework. The exit of Tether from the euro-stablecoin market underscores the complexities and uncertainties surrounding stablecoin regulations in the region.