BBVA Joins Forces with EU Banks for New Euro Stablecoin Initiative

TLDR

• BBVA has joined the Qivalis consortium, a European initiative focused on creating a euro-pegged stablecoin.
• The project now includes major European banks such as BNP Paribas, ING, and UniCredit, aiming to challenge US-based stablecoins.
• BBVA’s participation highlights its long-standing interest in digital assets and blockchain technology.
• The stablecoin initiative will allow for faster, blockchain-based payments and settlements within the European Union.
• Qivalis is seeking approval from the Dutch central bank to operate under the EU’s digital asset regulatory framework, MiCA.

BBVA, Spain’s second-largest bank, has joined a European Union-based initiative aimed at developing a regulated euro stablecoin. The project, led by Qivalis, includes several major EU banks and seeks to provide an alternative to the dollar-backed stablecoins that dominate the global market. The move comes as the EU aims to reduce its reliance on non-European digital currencies.

BBVA Strengthens European Stablecoin Effort

BBVA’s involvement in the Qivalis consortium adds strength to an effort already backed by leading EU banks. The group now includes prominent financial institutions such as BNP Paribas, ING, UniCredit, and CaixaBank. This collaboration aims to create a euro-pegged stablecoin, challenging the dominance of US-based digital dollar stablecoins like Tether and USDC.

BBVA’s role in the project reflects its ongoing interest in digital assets. The bank has been exploring blockchain technology and digital currencies for years, offering services like Bitcoin and Ethereum trading since 2021. “Collaboration between banks is key to create common standards that support the evolution of the future banking model,” said Alicia Pertusa, head of partnerships and innovation at BBVA.

The Challenge to Dollar-Dominated Stablecoins

The stablecoin market, valued at $300 billion, is currently dominated by Tether’s USDT and Circle’s USDC. Together, these two assets account for $256 billion, leaving just $860 million for euro-backed coins. The Qivalis group hopes to offer a viable alternative by introducing a stablecoin that will be fully backed by trusted European banks.

By introducing a euro-pegged stablecoin, Qivalis intends to facilitate faster, blockchain-based payments and settlements across Europe. This would allow EU businesses and consumers to conduct transactions without relying on traditional financial institutions or foreign providers. This development also aims to ensure that Europe maintains its monetary independence in the face of growing challenges from US-based initiatives.

Regulatory Steps for Qivalis Stablecoin

Qivalis is working to gain approval from the Dutch central bank to operate as an electronic money institution. This authorization is crucial to meet the EU’s digital asset regulatory framework, known as MiCA. Once the approval is secured, the consortium plans to launch the stablecoin commercially in the second half of 2025.

Qivalis is positioning itself as Europe’s leading bank-backed stablecoin project. The collaboration between these financial giants highlights the EU’s desire to assert itself in the growing market for stablecoins and blockchain-based financial services.

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