BBVA signs up to banking-led venture planning euro-pegged stablecoin

Core Viewpoint - BBVA has joined a consortium of 11 European banks to create Qivalis, a joint venture aimed at issuing a euro-linked stablecoin to facilitate faster and lower-cost payments and digital asset settlements within a regulated framework [1][2]. Group 1: Joint Venture and Regulatory Framework - Qivalis is established as an Amsterdam-based company and will operate under the EU's Markets in Crypto-Assets framework (MiCA), ensuring compliance with solvency, governance, and customer protection requirements [2]. - The venture is currently awaiting authorization from the Dutch central bank to function as an electronic money institution [4]. Group 2: Collaboration and Innovation - BBVA emphasizes the importance of collaboration among banks to create common standards that foster financial innovation and enhance the future banking model [3]. - The addition of BBVA to the consortium is seen as a significant advancement, bringing the total number of participating banks to twelve, all committed to developing a secure euro stablecoin framework [3]. Group 3: Use Cases and Benefits - A potential use case highlighted by the consortium involves enabling self-employed professionals to make quicker and cheaper payments to overseas suppliers through a euro-linked method integrated into their existing banking services [5]. - The shared stablecoin aims to provide new payment options and facilitate the settlement of tokenized financial assets on blockchain technology [4]. Group 4: BBVA's Commitment to Digital Assets - BBVA's involvement in Qivalis is part of its ongoing efforts to explore digital assets, building on previous initiatives such as a collaboration with SWIFT on a blockchain-based shared registry and participation in the Agorá initiative for improving cross-border payments [6].