Group of EU banks pushes for a euro-pegged stablecoin by 2027

A consortium of 10 EU-based banks just dropped the news: they're pushing for a euro-pegged stablecoin launch in 2026. The entity they formed, Qivalis (based in Amsterdam), is gunning for regulatory approval from the Dutch Central Bank to roll this out "in the second half of 2026."

BNP Paribas announced on Tuesday that it's joining nine other EU banks in this initiative. The plan? Launch a euro-backed stablecoin that's fully compliant with the EU's Markets in Crypto-Assets (MiCA) framework — assuming regulators give the green light.

This move comes as US regulators are prepping to implement the GENIUS Act — a law signed by President Trump in July that establishes a framework for payment stablecoins in the States. The EU isn't waiting around.

But not everyone's cheering. Dutch Central Bank Governor Olaf Sleijpen has warned about potential risks to monetary policy as the stablecoin market grows. The European Central Bank (ECB) released a report in November saying stablecoin risks are "likely limited," but added that "the rapid growth justifies close monitoring."

Here's the reality check: euro-denominated stablecoins currently have a market cap of less than €350 million (about $407 million). That's less than 1% of the global stablecoin market as of July, according to ECB adviser Jürgen Schaafhe.

Meanwhile, Tether just ended redemptions for its euro-pegged coin, EURt, on November 25. They announced they'd discontinue support about a year ago, citing the EU's MiCA regulations as the reason. CEO Paolo Ardoino claimed MiCA posed risks for stablecoins.

So while Tether exits stage left, these 10 EU banks are charging ahead — trying to build Europe's answer to dollar-pegged stablecoins before the US framework solidifies.