What began as a largely fintech-led experiment is steadily gaining traction among incumbent banks. Across Europe, established financial institutions are now assessing stablecoins alongside other payment innovations, driven by the need to modernise transaction flows while upholding regulatory discipline, operational resilience and customer confidence.
For many banks, the discussion is no longer about whether stablecoins belong in the financial system, but about how they can be deployed responsibly and at scale. Persistent frictions in cross-border payments, settlement lag and the growing expectation of always-on digital services are exposing the limitations of existing infrastructures, particularly in corporate and wholesale banking. At the same time, Europe faces a strategic question: how to ensure that the future architecture of digital money is not shaped solely by non-European actors or dominated by dollar-based instruments.
Ultimately, the adoption of stablecoins will be determined by practical demand. Different users will gravitate towards different applications, depending on their operational needs and the ecosystems in which they operate. Platforms that integrate stablecoins natively as a payment option are likely to drive early use, especially in cross-border or digital-native environments.
Given their global reach, stablecoins issued by European banks are unlikely to be confined to domestic users. This international dimension implies a diversity of use cases, not only for corporates but also across banks themselves, reflecting differences in business models, geographic exposure and sectoral focus.
Enterprise-first applications
Against this backdrop, a group of major European banks, including CaixaBank, has joined forces to develop a euro-denominated stablecoin backed by regulated financial institutions. Organised through a consortium model and supported by a dedicated entity, Qivalis, the initiative signals a shift towards cooperation as a catalyst for innovation in payments. The initiative is fully compliant with the EU’s Markets in Crypto-Assets Regulation (MiCA), which is set to be completely implemented by mid-2026, marking a significant step forward in regulated digital finance.
In contrast to retail-oriented projects such as the prospective digital euro, bank-backed stablecoins are being designed primarily with enterprise use cases in mind. Features such as near-instant settlement, programmability and cross-border operability create opportunities in areas ranging from treasury management and supply chain finance to the tokenization of financial instruments. For multinational corporates, the value proposition is clear: more efficient, predictable and continuously available payment solutions.
A defining characteristic of these initiatives is their anchoring within a robust regulatory framework. MiCA establishes a common set of rules that addresses concerns around governance, financial stability and user protection. Operating as regulated electronic money institutions, bank-backed stablecoins aim to merge the advantages of distributed ledger technology with the safeguards traditionally associated with the banking sector.
This emphasis on trust alongside innovation is increasingly shaping European banks’ approach to digital assets. As CaixaBank CEO Gonzalo Gortázar has observed, payments are undergoing rapid transformation, with outcomes that remain uncertain. Any new initiatives come with their own set of risks and adoption barriers, but for banks, opting out is not a viable strategy. As with the earlier expansion of instant payments, active engagement is essential to retain strategic flexibility and to help ensure that new instruments strengthen, rather than weaken, the financial system.
A pragmatic approach to blockchain
Beyond efficiency gains, the strategic case also encompasses monetary and technological considerations. A euro-denominated stablecoin issued by a consortium of European banks could contribute to reinforcing Europe’s autonomy in digital finance. In a landscape largely shaped by US dollar-linked stablecoins, a credible euro-based alternative would support global digital transactions while embedding European standards on compliance, data protection and governance.
Qivalis, based in Amsterdam and supported by banks such as CaixaBank, ING, BNP Paribas and UniCredit, illustrates this pragmatic vision. With an experienced management team and governance designed to meet supervisory expectations, the project is targeting a market launch in the second half of 2026. Its focus on concrete economic applications, rather than speculative use, reflects a measured and utility-driven approach to blockchain adoption.
More broadly, the rise of bank-backed stablecoins marks an inflection point for payments in Europe. It suggests a sector that is moving beyond defensive reactions to technological change and instead actively shaping its trajectory. By combining scale, regulatory certainty and collaborative execution, European banks are positioning themselves at the centre of the next phase of digital payments, aligning innovation with stability and efficiency with trust.
As regulation and technology continue to converge, stablecoins are shifting from experimental concepts to practical tools within Europe’s payments ecosystem. Ongoing collaboration between banks, corporates and policymakers will be key to integrating them responsibly and harnessing their potential in support of a more efficient, resilient and competitive European financial system.
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