European Banks Announce Launch of Euro Stablecoin

A group of 12 prominent European banks, spearheaded by Qivalis, has chosen Fireblocks as the technology provider for a new euro-pegged stablecoin. This initiative aligns with the European Union's Markets in Crypto-Assets (MiCA) regulation, as reported by Cointelegraph.

The consortium includes notable financial institutions such as BBVA, BNP Paribas, ING, and UniCredit. Fireblocks will supply essential technology for tokenization, secure wallets, and compliance measures, including identity verification and sanctions checks.

This stablecoin is targeted at institutional clients and is designed for various applications, such as transactions, capital management, and engagement with tokenized assets. It will be completely backed and classified as electronic money under the oversight of the Dutch central bank.

The anticipated launch date is in the second half of 2026.

This project aims to diminish the prevalence of dollar-pegged stablecoins, which, according to DeFiLlama, currently have a market capitalization exceeding $320 billion, with a staggering 99% of the supply linked to the US dollar.

Steven Richardson, Chief Strategy Officer at Fireblocks, emphasized that this stablecoin will provide a regulated option for European businesses, replacing less secure alternatives.

In related concerns, the Bank for International Settlements highlighted in April that many dollar-pegged stablecoins are functioning more as investment vehicles rather than as payment methods.