Spain’s second-largest financial institution is joining a rapidly forming consortium of major banks with plans to launch a regulated Euro stablecoin and reshape digital payments in Europe.
BBVA becomes the 12th bank in the Qivalis consortium
BBVASpain’s second largest bank by assets. Kibalisan Amsterdam-based consortium of EU lenders developing a regulated token linked to the euro. The move adds another major institution to the project, which aims to challenge the dominance of dollar-pegged crypto assets in cross-border payments.
BBVA and its $800 billion Among the assets currently on its board, Kyvaris counts more than a dozen major European Union banks. Additionally, the group already includes prominent financial institutions such as: BNP Paribas, ING and unicredithighlighting the scale of bank support behind this initiative.
An alternative currency to bank-backed dollar stablecoins
The consortium’s primary objective is to launch tokens that are fully backed and issued by a network of established banks rather than crypto-native companies. However, this design still targets blockchain-based use cases, positioning the token as a direct replacement for dollar-denominated stablecoins currently used for trading, payments, and money transfers.
Today, the token is USD roughly control $300 billion Global stablecoin market. In contrast, the total market capitalization of euro-denominated stablecoins is 1 billion dollarswhich emphasizes quite a bit Euro stablecoin market capitalization gap European institutions are now calling for it to be shut down.
Market conditions and major issuers
Of the total $300 billion stablecoin market, $860 million It is linked to the euro. That being said, the market is highly concentrated: Based in El Salvador tether Leads with $185 billion USDT token and is based in New York Circle Internet (CRCL) USDC accounts for about $70 billion.
This concentration of dollar-pegged products has raised concerns in some parts of Europe about long-term dependence on non-EU issuers for digital payment assets. Furthermore, it is bank-guaranteed euro token It is not an offshore stablecoin issued by a private technology company and is supervised under European regulations.
Use case for euro-denominated blockchain payments
Kyvaris argues that europegged tokens could allow EU companies and individuals to send money and make payments directly on blockchain networks while remaining in the eurozone. Importantly, users no longer need to rely on traditional correspondent banking or third-party providers based out of reach.
Such tokens could be the underlying European on-chain paymentslarge-scale payments between banks and businesses, and programmable financial applications. However, its success will depend on both regulatory approval and adoption by payment processors, exchanges and corporate finance authorities across the region.
Regulatory path under MiCA
To move forward, Kyvaris is seeking permission from the Dutch Central Bank to operate as an electronic money institution. This permission is Regulated Euro Stablecoin under the European Union Crypto Asset Market, or micaa framework that is being phased in across blocks.
The licensing process in the Netherlands is Authorization of Mykas Tablecoin actually. Additionally, it will be determined how EU supervisors interpret safeguards regarding reserves, transparency, and redemption rights for bank-issued tokens.
Timeline and strategic ambition
Kyvaris plans to introduce a euro-linked token in the second half of 2019. 2026assuming that the regulatory process will proceed smoothly. This project aims to create shared technical and compliance standards that can be used by multiple institutions within the EU.
“Cooperation between banks is key to creating common standards that will support the evolution of future banking models,” he said. Alicia PertusaHead of Partnerships and Innovation BBVA CIBin a statement. He further emphasized that collaboration on digital assets could open up new business models in trade finance and financial services.
Qivalis positions itself to lead EU banking stablecoin projects
For Qivalis, BBVA’s decision to join comes as validation of the company’s strategy to build a European bank-backed token from the ground up. In the words of jean oliver sellBBVA’s involvement “reflects the growing dedication of European banking institutions to jointly develop a European on-chain payments ecosystem based on the trust that banks provide,” said CEO of Qivalis and former executive of Coinbase Germany.
Mr Sell added that this step would solidify Kybalis’ position. european first thing EU Bank Stablecoin Project. However, the initiative will face competition from private stablecoin issuers and central bank projects, including ongoing discussions over the possibility of a digital euro.
Impact on the Euro Digital Payment Rail
Industry players see the consortium’s efforts as part of a broader effort to upgrade. euro digital payment rail For a tokenized economy. Widely adopted bank-issued coins have the potential to support near real-time securities settlement, cross-border transactions, and treasury operations.
at the same time, euro stablecoin The debate is prompting policymakers, banks and fintech companies to reassess Europe’s role in the next phase of digital finance. In that context, the move by financial institutions like BBVA to join collaborative projects like Qivalis shows that large institutions are no longer content to leave the field to dollar-based cryptocurrency issuers.
In summary, BBVA’s entry into the Qivalis consortium strengthens a growing coalition of EU banks betting that regulated bank-issued Eurotokens can become a reliable alternative to dollar stablecoins and anchor Europe’s on-chain payments infrastructure by 2026.
