EU Banks Plan Euro-Pegged Stablecoin Launch in 2026

According to Cointelegraph, a consortium of ten banks is set to introduce a euro-pegged stablecoin by 2026, under the oversight of the Dutch Central Bank. BNP Paribas announced on Tuesday that it would collaborate with nine other European Union-based banks to launch this stablecoin in the latter half of 2026. The banks have formed an Amsterdam-based entity named Qivalis, which will ensure the stablecoin complies with the Markets in Crypto-Assets (MiCA) framework, pending regulatory approval. Qivalis CEO Jan-Oliver Sell emphasized the significance of a native euro stablecoin, stating that it represents more than just convenience; it embodies monetary autonomy in the digital era. He highlighted the potential for European businesses and consumers to engage with on-chain payments and digital asset markets using their own currency. This initiative comes as U.S. regulators are poised to implement a law establishing a framework for payment stablecoins, known as the GENIUS Act, which was signed into law by U.S. President Donald Trump in July. Amid these developments, Dutch Central Bank Governor Olaf Sleijpen has reportedly expressed concerns about the potential risks to monetary policy as the stablecoin market expands. The European Central Bank (ECB) released a report in November indicating that while the risks associated with stablecoins are likely limited, their rapid growth warrants close monitoring. ECB adviser Jürgen Schaaf noted that euro-denominated stablecoins had a market capitalization of less than 350 million euros, or approximately $407 million, at the time of publication, representing less than 1% of the global market as of July. In a related development, stablecoin issuer Tether has withdrawn from the EU stablecoin market. The company ceased redemptions for its euro-pegged coin, EURt, on November 25, about a year after announcing its intention to discontinue support. Tether attributed this decision to the EU’s MiCA regulations, with CEO Paolo Ardoino citing potential risks for stablecoins under the new regulatory framework.