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A group of ten banks are planning on launching a euro-pegged stablecoin that is compliant with the European Union’s Markets in Crypto-Assets (MiCA) framework.
In a recent notice, BNP Paribas said that it would join nine other banks based in the EU to launch the stablecoin “in the second half of 2026.” The stablecoin will be launched through an Amsterdam-based entity called Qivalis.
The launch will, however, be subject to regulatory approval.
🇪🇺 BREAKING: Ten major EU banks are teaming up to launch a euro-pegged stablecoin by 2026, under a Dutch Central Bank–backed entity.
Regulatory approval targeted for late 2026.
The stablecoin wars are officially here.#EU #Stablecoin #Crypto #Blockchain #ECB pic.twitter.com/PbRu44Tqzm— Bruno Trader (@BrunoTrade87) December 3, 2025
New Euro-Pegged Stablecoin Will Bring “Autonomy” In The Digital Age
Stablecoins are blockchain-based tokens that are backed by liquid reserves of stable assets. Popular assets used for these tokens’ reserves include fiat currencies.
In 2025, the stablecoin market has boomed amid a friendlier regulatory climate in the US. A growing number of major firms have also started exploring blockchain technology and stablecoins.
According to Qivalis CEO Jan-Oliver Sell, the planned launch of the euro-pegged stablecoin next year “isn’t just about convenience – it’s about monetary autonomy.”
The token will present “ new opportunities for European companies and consumers to interact with onchain payments and digital asset markets in their own currency,” the CEO added.
Stablecoins Pose Little Threat To Europe, Says ECB
The EU banks’ planned euro stablecoin launch comes after the European Central Bank (ECB) said that stablecoins pose little threat to Europe.
In a financial stability review that was published towards the end of November, the ECB said that its assessment that stablecoins pose a minimal threat to financial stability is due to both the low adoption rates and the pre-emptive regulatory framework established by the European Union for these tokens.
The report, which was authored by financial stability experts Senne Aerts, Claudia Lambert, and Elisa Reinhold, did, however, warn that the growth of the stablecoin market must be continually monitored.
The ECB’s assessment of stablecoins contradicts the views of Dutch Central Bank Governor Olaf Sleijpen, who reportedly warned of the potential risk to monetary policy as the stablecoin market grows.
USD Stablecoins Account For The Majority Of The Market
The stablecoin market cap soared to above $300 billion for the first time this year, and currently stands at about $311.4 billion, according to data from CoinGecko.
Of that capitalization, USD-pegged tokens account for the majority of the market. More specifically, Tether’s USDT, which has a market cap of over $114.9 billion, and Circle’s USDC, which has a total capitalization exceeding $14.2 billion, are the two largest stablecoins in the market.
Top stablecoins by market cap (Source: CoinGecko)
After USD-pegged stablecoins, tokens backed by physical gold are the next-biggest stablecoins in the market.
According to the CoinGecko data, the largest non-USD or gold-backed stablecoin is Circle’s EURC, which currently has a market cap of more than $28.7 million.
Tether had offered a euro-pegged token, EURt, but ended redemptions for the stablecoin on Nov. 25. This was about one year after the company said it would discontinue its support for the token.
Tether said at the time that the decision was based on the EU’s MiCA regulations, which the company’s CEO, Paolo Ardoino, has said posed systemic risks for stablecoins.
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