Spanish banking giant BBVA, the nation's second-largest bank by assets, has officially joined the Qivalis consortium, a group of major European Union banks aiming to launch a regulated euro-pegged stablecoin. This move marks a significant institutional push to challenge the dominance of dollar-denominated stablecoins in the digital asset market.
BBVA brings approximately $800 billion in assets to the venture, expanding the consortium to a dozen members. Other prominent participants include BNP Paribas, ING, UniCredit, and CaixaBank. The project's explicit goal is to create a token backed by a network of established banks, offering a European alternative to crypto-native stablecoins like Tether's USDT and Circle's USDC, which are predominantly dollar-based and operated by entities outside the EU.
The scale of the challenge is clear from market data: the total stablecoin market is valued at around $300 billion, yet euro-linked tokens represent a mere $860 million. Tether's USDT dominates with a $185 billion market cap, followed by Circle's USDC at $70 billion.
Alicia Pertusa, Head of Partnerships and Innovation at BBVA CIB, emphasized the collaborative nature of the initiative, stating, "Collaboration between banks is key to create common standards that support the evolution of the future banking model." Jan-Oliver Sell, CEO of Qivalis and a former Coinbase Germany executive, added that BBVA's involvement "reflects the increasing dedication of European banking institutions to jointly develop a European on-chain payment ecosystem based on the trust that banks provide."
The consortium is operating on a fixed regulatory timeline. It is currently seeking authorization from the Dutch central bank to operate as an Electronic Money Institution (EMI), a prerequisite for issuing stablecoins under the EU's Markets in Crypto-Assets (MiCA) regulatory framework. The group is targeting a commercial launch in the second half of 2026, aligning with the July 1, 2026, MiCA transition deadline after which only licensed entities can operate stablecoin services in the EU.
The strategic aim extends beyond simple payments. The euro-pegged coin is designed to enable EU businesses and consumers to conduct blockchain-based payments and settlements directly in euros, reducing reliance on traditional financial rails or third-party providers outside the bloc. It also aims to serve as a native settlement layer for tokenized assets like bonds and funds, eliminating the need for USD conversion and aligning with European monetary policy.
