European Banking Union advances euro stablecoin plan, with giants like ING and UniCredit aiming for launch in 2026

On March 2nd, several major European banks are accelerating their entry into the stablecoin market. According to Spanish media Cinco Días, the alliance Qivalis, composed of multiple European banks, is in negotiations with liquidity providers and platforms in the crypto industry. They plan to launch a euro-pegged stablecoin and aim to go live in the second half of 2026.

The alliance includes strong financial institutions such as ING, UniCredit, and recently joined BBVA. Previously, in September 2025, nine banks—ING, UniCredit, CaixaBank, Danske Bank, Raiffeisen Bank International, KBC, SEB, DekaBank, and Banca Sella—co-founded the alliance to develop a digital payment infrastructure compliant with European regulations.

Qivalis CEO Jan Sell stated that the alliance is actively seeking European and global partners to expand the use of the stablecoin. One of the project’s core goals is to provide a “regulated, domestically issued US dollar stablecoin alternative,” to facilitate real-time cross-border payments and improve global trade settlement efficiency.

Currently, the alliance is engaging in in-depth discussions with market participants, including market makers, liquidity providers, and digital asset platforms. Meanwhile, member banks also plan to support the distribution and use of the stablecoin within their financial systems.

Regulatory compliance is seen as a key factor in advancing the project. Qivalis is screening partners that meet the EU’s Markets in Crypto-Assets (MiCA) framework. Reports indicate that a Spanish digital asset platform licensed under MiCA has had preliminary discussions with alliance banks about potential cooperation.

Regarding asset reserves, Qivalis CFO Floris Lugt revealed that the euro stablecoin will operate on a 1:1 reserve mechanism, with at least 40% of reserves held in bank deposits. The remaining reserves are expected to be invested in high-quality short-term sovereign bonds across multiple Eurozone countries to reduce concentration risk.

Additionally, the stablecoin will support a 24/7 redemption mechanism, allowing users to exchange tokens for equivalent euro funds at any time. Industry experts believe that as European financial institutions accelerate into the stablecoin space, regulated euro stablecoins could become an important addition to the global digital payment system.