A group of 10 European banks, including ING, UniCredit, and BNP Paribas, are forming a company named Qivalis to launch a euro-pegged stablecoin in the second half of 2026, aiming to challenge U.S. dominance in digital payments. The company will be headquartered in Amsterdam and plans to hire 45-50 employees.

Stablecoins, a type of cryptocurrency backed by traditional currencies, have seen significant growth, with Tether holding around $185 billion worth of its dollar-based token in circulation. Despite this, there is little demand for euro-pegged stablecoins, as shown by Societe Generale’s SG-FORGE, which only has 64 million euros in circulation.

Qivalis aims to provide near-instant, low-cost payments and settlements with their stablecoin, primarily focusing on crypto trading. The company expects to launch its stablecoin in the beginning of the second half of 2026 after obtaining an Electronic Money Institution (EMI) license from the Dutch central bank.

Regulators have expressed concerns about stablecoins potentially disrupting the regulated banking system. The European Central Bank (ECB) is exploring a digital euro as an alternative to privately issued stablecoins, with ING’s digital assets lead, Floris Lugt, noting that the ECB is supportive of Qivalis’ plan to launch a euro-pegged stablecoin.

Read more at Yahoo Finance: European banks led by BNP, ING push ahead on euro stablecoin plan