12 EU Banks Form Qivalis to Launch Fully Reserved Euro Stablecoin This Year
Qivalis, a consortium of 12 major EU banks including ING, UniCredit, BNP Paribas, CaixaBank and BBVA, is moving to launch a euro-denominated, 1:1 fully reserved stablecoin in the second half of this year. The project seeks issuance and operating permission from the Dutch central bank under the EU’s Markets in Crypto-Assets (MiCA) regulation and plans to list on regulated trading venues from day one. Reserves will be held at highly rated institutions with at least 40% in bank deposits and the remaining 60% invested in high-quality, short-dated euro-area sovereign bonds diversified across multiple EU countries. Qivalis is engaging crypto exchanges, market makers and liquidity providers to support 24/7 redemption and convertibility to euros, while targeting regulated on- and off-chain trading venues and business cross-border instant euro payments. The initiative aims to reduce reliance on dollar-pegged stablecoins and strengthen euro-based liquidity and settlement for European businesses and traders.
Bullish
A regulated, fully reserved euro stablecoin backed by 12 major EU banks is likely bullish for the euro stablecoin market and related on-chain euro liquidity. Short-term impacts: increased interest from institutional traders and market makers could boost demand for euro-denominated trading pairs and liquidity provisioning, especially on regulated venues that list the token. Expect periods of volatility around issuance, listings and MiCA approval updates as markets price in supply, pairing availability and redemption terms. Long-term impacts: widespread adoption would reduce reliance on dollar-pegged stablecoins for euro settlements, deepen euro liquidity on crypto venues, and potentially increase euro-denominated trading volume. Bank backing and conservative reserve composition (deposits + short-term sovereign bonds) should enhance perceived stability and regulatory trust, attracting risk-averse institutional counterparties. However, adoption risk remains — success depends on regulatory approvals, competitive pricing, on-chain integrations, and whether exchanges and custodians support the token. Overall, prospects for euro stablecoin demand and euro-based trading liquidity are positive, so the direct price impact on the euro stablecoin itself is expected to be bullish.