European Banks Choose Fireblocks for Euro Stablecoin Initiative
A consortium of 12 European banks, spearheaded by Qivalis, has selected Fireblocks to establish the infrastructure for a euro stablecoin compliant with MiCA regulations.
Summary
- Qivalis and 12 European banks are developing a MiCA-compliant euro stablecoin with the support of Fireblocks infrastructure.
- The euro token will focus on institutional settlement, treasury operations, and tokenized asset utilization across Europe.
- European banks are advocating for local stablecoins as dollar-backed options remain prevalent in the global market.
The initiative aims to launch in the latter half of 2026, subject to approval from De Nederlandsche Bank under the European Union’s Markets in Crypto-Assets Regulation framework.
According to Qivalis, the token will be fully regulated and will maintain a 1:1 backing with euros. The company plans to establish the product as an electronic money institution under the oversight of Dutch authorities. The consortium includes backing from notable banks such as BBVA, BNP Paribas, ING, and UniCredit.
Fireblocks will provide the tokenization framework, wallet infrastructure, and lifecycle management solutions for the project. The platform will also incorporate compliance features like identity verification and sanctions screening, essential for regulated digital asset products in Europe.
A representative from Fireblocks mentioned that the project is being developed as a “regulated euro-native settlement instrument” tailored for European institutions. The platform is intended to facilitate issuance, custody, treasury management, and payment orchestration across various banking applications.
Furthermore, the envisioned stablecoin is targeted at institutional applications including settlement, treasury functions, and tokenized assets. The participating banks aim to offer a euro-denominated digital payment solution that operates across multiple business sectors without dependency on dollar-denoted stablecoins.
This effort aligns with the increasing drive among European banks and corporations to enhance local digital payment systems. It also signifies a broader initiative to lessen reliance on dollar-backed stablecoins, which continue to dominate global digital asset transactions and settlements.
Europe’s response to the dominance of dollar stablecoins
According to DeFiLlama data, the global stablecoin market hovers around $320 billion, with approximately 99% of the supply linked to the US dollar. Euro-denominated stablecoins constitute a minimal segment of this market, prompting European institutions to endorse local alternatives under definitive regulatory frameworks.
This initiative also comes amid ongoing concerns raised by policymakers and regulators in Europe regarding the influence of foreign-currency stablecoins within the region. The Bank for International Settlements has reiterated that certain dollar stablecoins might function more like investment assets than currency due to their exposure to short-term securities.
Earlier this month, Bank of France’s first deputy governor, Denis Beau, called on the European Union to restrict the utilization of non-euro stablecoins for daily transactions. In this context, the Qivalis-led project represents another step towards creating a regulated euro stablecoin market backed by direct banking support and MiCA-compliant infrastructure.