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]

Group 1 - BBVA has joined Qivalis, a consortium of lenders aiming to introduce a regulated euro stablecoin to compete with the dominance of digital dollars [1] - The group now includes a dozen major EU banks, such as BNP Paribas, ING, and UniCredit, with BBVA's assets totaling $800 billion [1] - The project aims to create a token backed by established banks, providing an alternative to dollar-tied crypto-native stablecoins [2] Group 2 - Currently, only $860 million of the $300 billion stablecoin market is tied to the euro, with Tether and Circle Internet dominating the market with $185 billion and $70 billion respectively [2] - A euro-pegged coin would enable EU businesses and consumers to conduct blockchain-based payments in euros without relying on external financial systems [3] - Collaboration among banks is essential to establish common standards for the future banking model, as stated by BBVA's head of partnerships and innovation [3] Group 3 - BBVA's participation signifies the commitment of European banks to develop a European on-chain payment ecosystem based on trust [4] - Qivalis is seeking authorization from the Dutch central bank to operate as an electronic money institution, a necessary step under the EU's MiCA regulatory framework [4] - The project plans to launch the euro stablecoin in the second half of 2026 [5]

Core Insights - The emergence of a globally significant euro stablecoin is a logical outcome given the stability of the euro and the size of the euro economy, which processed approximately €2.2 trillion daily in 2023 [1][2] - The shift to tokenized finance is irreversible, and stablecoins are becoming essential infrastructure for financial services, with projections of $30 trillion in tokenized real-world assets by 2034 and up to $5 trillion in tokenized digital securities by 2030 [2][3] - The current euro stablecoin market is small, with only about €600 million in circulation, primarily due to Europe's lack of integration with existing financial infrastructure [3][5] Euro Stablecoin Market - The euro is the second most-active currency globally, yet most financial activity settles in dollars, indicating a need for better infrastructure to support euro stablecoins [3][4] - Stablecoins processed approximately $28 trillion in 2024, surpassing the combined volumes of Visa and Mastercard, highlighting the scale at which stablecoins operate [4] - The dominance of dollar-based stablecoins, which account for around 99% of a $300+ billion market, emphasizes the need for a credible euro stablecoin to compete effectively [5][6] Future Outlook - The next major expansion in stablecoins is expected to focus on a scalable euro stablecoin, which is crucial for the size of Europe's economy [6] - Policymakers and investors are encouraged to consider the optimal mix of on-chain euro options that balances innovation with financial stability [5][6]