European Banks Move Deeper Into Blockchain Settlement

A consortium of major European banks is advancing plans to launch a MiCA-compliant euro-pegged stablecoin, highlighting the accelerating convergence between traditional banking infrastructure and blockchain-based financial systems.

The initiative is being developed by Qivalis, backed by 12 EU banks including ING, UniCredit, BNP Paribas, CaixaBank, and BBVA, with a potential launch targeted for H2 2026.

The goal is to create a European alternative to U.S.-dominated stablecoins while enabling blockchain-based euro payments and settlement. The design reflects an institutional approach:

• 1:1 reserve backing
• ≥40% held in bank deposits
• remainder in short-term euro-area sovereign bonds
• reserves held across highly rated banks
• 24/7 redemption

The project is seeking authorization from the Dutch central bank under the EU’s MiCA framework, positioning the token within Europe’s emerging regulated digital asset infrastructure.

Why this matters

Rather than competing with blockchain, major banks are beginning to build regulated digital settlement layers on top of it. Bank-issued stablecoins may serve as a bridge between traditional banking liquidity and blockchain transaction networks, helping reduce operational friction for institutional participants.

As traditional finance begins issuing blockchain-native settlement instruments, the line between financial rails and digital asset networks continues to narrow. This trend may play an important role in the next phase of institutional adoption in digital assets.