A group of European banks is expanding its push into stablecoins amid concerns about the growing dominance of US dollar-backed crypto infrastructure in global finance.
Qivalis, an Amsterdam-based consortium developing a euro-pegged stablecoin, said on 20 May that 25 additional banks had joined the initiative, bringing total membership to 37 financial institutions across 15 countries, according to Reuters.
The new members include ABN Amro, Rabobank, Sabadell, Bankinter, Bank of Ireland, Handelsbanken, and Nordea. Existing participants already included major lenders such as ING, BNP Paribas, and BBVA, Reuters reported.
The expansion highlights how traditional European financial institutions are becoming increasingly concerned about the influence of US-controlled stablecoin networks in digital payments and tokenized finance.
Europe’s banks are reacting to dollar stablecoin dominance
Stablecoins have become one of the fastest-growing sectors in crypto. Still, the market remains overwhelmingly dominated by dollar-backed assets.
Reuters reported that Tether’s USDT and Circle’s USDC account for the vast majority of global stablecoin liquidity, with roughly $190bn and $77bn in circulation, respectively.
That dominance has created growing pressure inside Europe to develop local alternatives tied to the euro before blockchain-based settlement systems become more deeply integrated into mainstream finance.
Qivalis framed the project in explicitly regional terms
“The euro is Europe’s currency, and on-chain financial infrastructure should carry it — built by European institutions and governed by European rules,” Qivalis CEO Jan-Oliver Sell said in a statement cited by Reuters.
The consortium is also positioning the project around the long-term rise of tokenized assets, where instruments such as bonds, deposits, and real estate could eventually move across blockchain-based settlement rails.
That would give stablecoin issuers significant influence over future payment and settlement infrastructure.
Institutional interest is growing faster than actual demand
Still, the project faces a major challenge: euro stablecoins have yet to achieve meaningful adoption.
Reuters reported that Societe Generale’s crypto subsidiary, SG-FORGE, launched a euro-backed stablecoin in 2023. Still, the token currently has only about €105.6m in circulation.
That remains tiny compared to the scale of dollar stablecoins.
The gap suggests European banks are preparing for a future financial system that may become increasingly tokenized, even if current market demand for euro-denominated crypto assets remains relatively weak.
The timing is also notable as regulators in both Europe and the United States move closer toward clearer stablecoin frameworks, increasing competition over who will control the next generation of digital payment infrastructure.
Final Summary
- Twenty-five additional European banks joined the Qivalis consortium, bringing the total to 37 financial institutions across 15 countries.
- The project reflects growing concern among European lenders about the dominance of US dollar-backed stablecoins in digital payments and tokenized finance.