European Banks Form Consortium to Launch Euro Stablecoin in Second Half of 2026

Source

Minseung Kang

Summary

A consortium of 12 European banks has begun developing a euro stablecoin that complies with the EU’s MiCA framework.
The stablecoin is being designed with 1:1 reserves and an electronic money institution, or EMI, structure, with planned uses in interbank payments and tokenized asset trading.
As Europe’s financial sector looks to reduce reliance on dollar-based stablecoins and develop euro-denominated alternatives, regulators are emphasizing the need for global regulatory coordination.

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Major European banks are preparing to issue a regulated euro stablecoin.

Cointelegraph reported on April 21 that a consortium of 12 European banks, led by Netherlands-based fintech firm Qivalis, is working with Fireblocks to develop a euro stablecoin that complies with the European Union’s Markets in Crypto-Assets regulation, or MiCA.

The project is targeting a launch in the second half of 2026, subject to approval from De Nederlandsche Bank, the Dutch central bank. The consortium reportedly includes BBVA, BNP Paribas, ING and UniCredit.

The stablecoin will be issued on a fully reserved 1:1 basis and structured as an electronic money institution, or EMI, under Dutch supervision. It is being designed for uses including interbank settlement, treasury management and trading in tokenized assets.

Fireblocks will provide token issuance technology, wallet infrastructure and lifecycle management tools. It will also support compliance functions including identity verification and sanctions screening.

Europe’s financial industry is seeking euro-denominated alternatives as it tries to reduce reliance on dollar-based stablecoins in digital payments and settlement. Of the roughly $320 billion global stablecoin market, 99% is dollar-based, while euro-denominated tokens account for only a marginal share.

Regulators including the Bank for International Settlements have said some dollar stablecoins, because of their reliance on short-term securities, function more like investment products than money. They have also stressed the need for global regulatory coordination.

The Banque de France has also recently said the use of non-euro stablecoins for everyday payments should be restricted, underscoring a broader push in Europe to strengthen monetary sovereignty.