European banks form Qivalis to launch 1:1 euro-backed stablecoin, dey challenge dollar dominance

Qivalis, alliance wey get 12 major European banks like BNP Paribas, ING, UniCredit, CaixaBank and BBVA, dey plan to launch 1:1 euro-backed stablecoin for H2 2026. The project wan provide regulated euro alternative to dollar-denominated stablecoins (USDT, USDC) and make bank credit enter on-chain finance. Qivalis propose conservative reserve model wey go keep at least 40% of reserves as bank deposits and the rest invest for high-grade, short-dated euro-area sovereign debt wey dem go diversify across EU countries. Reserves go dey stored for highly rated institutions and dem go support 24/7 redemption to ensure convertibility to euros. The consortium dey seek issuance and operating permission under EU’s MiCA framework and dem dey engage exchanges, market makers and liquidity providers. Target use cases include on- and off-chain regulated trading venues and instant cross-border euro payments for businesses. Short-term market impact on stablecoin liquidity likely small compared to dollar incumbents, but the initiative fit expand institutional on-chain euro use, create demand for euro-area sovereign paper, and shift infrastructure power toward regulated banks. Traders suppose to monitor issuance timetables, regulatory approvals, on-chain euro flows, and partnerships with exchanges and custodians wey fit affect liquidity and convertibility materially.