BBVA Joins Twelve European Banks Building Euro Stablecoin to Challenge Tether Dominance

Core Insights - BBVA, Spain's second-largest bank, has joined the Qivalis consortium, expanding the European stablecoin project to twelve member banks [1] - The consortium aims to create a credible euro alternative to the US-dominated stablecoin market, particularly Tether and Circle, which control $256 billion in market value [2] - Qivalis is awaiting approval from the Dutch central bank to operate as an electronic money institution, with a commercial launch expected in the second half of 2025 [3] Company Developments - Alicia Pertusa, head of partnerships and innovation at BBVA's corporate and investment banking arm, emphasized the importance of collaboration among banks to establish common standards for financial innovation [4] - BBVA has a history of exploring digital assets, having pioneered corporate loans using blockchain technology in 2018 and offering custody and trading services for cryptocurrencies since 2021 [5] - The stablecoin is designed to facilitate cross-border payments and settlements for tokenized assets in Euros, enhancing the speed of international transactions for businesses and freelancers [6] Industry Context - The ability of European banks to compete with established US players remains uncertain, with concerns about potential delays in the Digital Euro affecting Europe's monetary independence [7]