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    Wednesday, December 3
    Ethereum

    Group of EU Banks Push for a Euro-Pegged Stablecoin by 2027: Report

    KryptonewsBy No Comments2 Mins Read

    A group of 10 banks plans to introduce a euro-pegged stablecoin in 2026 under an entity authorized by the Dutch Central Bank.

    In a Tuesday notice, ​​BNP Paribas said it would join nine other EU-based banks in an effort to launch a euro-backed stablecoin “in the second half of 2026.” The Amsterdam-based entity formed by the banks, Qivalis, will launch a stablecoin compliant with the region’s Markets in Crypto-Assets (MiCA) framework, subject to regulatory approval.

    “A native euro stablecoin isn’t just about convenience — it’s about monetary autonomy in the digital age,” said Qivalis CEO Jan-Oliver Sell. “Presenting new opportunities for European companies and consumers to interact with onchain payments and digital asset markets in their own currency.”

    The move toward a significant euro-pegged stablecoin comes as US regulators prepare to implement a law establishing a framework for payment stablecoins in the country. The bill, called the GENIUS Act, was signed into law by US President Donald Trump in July.

    Related: Unlimit enters stablecoin infrastructure race with decentralized clearing house

    Amid the EU banks’ efforts, Dutch Central Bank Governor Olaf Sleijpen reportedly warned of the potential risk to monetary policy as the stablecoin market grows. The European Central Bank (ECB) released a report in November saying that the risks associated with stablecoins were likely limited, but “the rapid growth justifies close monitoring.”

    According to ECB adviser Jürgen Schaafhe, euro-denominated stablecoins had a market capitalization of less than 350 million euro, or about $407 million at the time of publication. This represented less than 1% of the global market as of July.

    Tether bows out of EU stablecoin race

    Stablecoin issuer Tether ended redemptions for its euro-pegged coin, EURt, on Nov. 25, about one year after announcing it would discontinue support. The company said at the time that its decision was based on the EU’s MiCA regulations, with CEO Paolo Ardoino claiming it posed risks for stablecoins.