Bank of Ireland has recently announced that it has joined a coalition of European financial institutions working to introduce a fully regulated, euro-denominated stablecoin. This participation highlights the banking institutions’ commitment to digital technology advancements and positions it at the center of such efforts to streamline payments across the continent. The initiative, known as Qivalis, now brings together 37 banks from 15 countries. The partner banks include ING, BNP Paribas, UniCredit, CaixaBank, and more. The stablecoin launch is planned for later this year.
While the European Central Bank is working toward issuing a CBDC [central bank digital currency], the Qivalis initiative is packaged as a privately issued stablecoin that, in many respects, competes with the future CBDC. The digital Euro will incorporate a full reserve commercial model backed by cash and highly liquid assets.
The consortium recently expanded by adding 25 new members, reflecting strong momentum behind the development of blockchain-based euro solutions.
Qivalis will issue a Euro stablecoin, which is compliant under EU rules – MiCA or Markets in Crypto Assets regulation.
This collaborative project seeks to address a gap in the stablecoin market, where Euro-backed tokens currently account for only 0.2% of total circulation. But this is unlikely to change anytime soon, because the US dollar decisively remains the dominant global reserve currency.
By developing a regulated alternative, the group aims to promote wider adoption of digital euro assets in institutional and large-scale transactions.
The Qivalis stablecoin will be backed one-to-one with the euro, enabling transfers and settlements on blockchain networks.
The project will operate under the oversight of the Dutch Central Bank (DNB), with Qivalis seeking authorization as an Electronic Money Institution.
This regulatory framework is expected to build (potential) trust among institutions and then further pave the way for integration of on-chain finance within Europe’s banking system.
Billy O’Connell, Chief Strategy Officer at Bank of Ireland, emphasized the strategic importance of the move.
He noted that the bank is leveraging this partnership to drive meaningful advancements for customers, bolster European financial infrastructure, and foster responsible growth in digital currencies.
According to O’Connell, the effort supports long-term goals of providing better financial options while helping define the next phase of digitalization / monetary transactions.
Jan-Oliver Sell, CEO of Qivalis, acknowledged the new partners. He described the expansion as a key advancement toward a transparent, rules-based on-chain environment for the euro.
Sell highlighted that European banks are increasingly prioritizing home-grown digital settlement solutions, underscoring the importance of developing infrastructure rooted in European values and governance.
New members alongside Bank of Ireland include ABN AMRO, Nordea, Intesa Sanpaolo, Rabobank, and Swedbank.
By focusing on a euro-native solution, European banks now aim to enhance competitiveness in the global digital economy, improve payment efficiencies, and maintain control over monetary standards within the EU framework. However, US dollar-denominated stablecoins are expected to continue to lead the space, as the United States remains the world’s most developed Fintech-supported economy with recent legislation and rule changes supporting digital asset development.
