A consortium of 37 European banks across 15 countries has backed Qivalis, a euro-denominated stablecoin project planned for launch in the second half of 2026. ING, one of the consortium members, noted that most stablecoin activity in wholesale cross-border payments and blockchain-based bond settlement remains denominated in United States dollars, creating persistent currency exposure for European businesses whose operations run in euros.

Dollar Dominance in the Stablecoin Market Remains Entrenched

DeFiLlama data places the global stablecoin market at approximately 322 billion dollars, with Tether USDT accounting for roughly 189.6 billion dollars and Circle USDC at 76.3 billion dollars. Together, the two dollar-denominated tokens represent about 82.5 percent of total stablecoin supply. Euro alternatives remain marginal by comparison. Circle reports approximately 387.9 million euros of EURC in circulation as of mid-May, while SG-FORGE EURCV stands at roughly 105.6 million euros. The two leading euro stablecoins combined amount to about 572 million dollars, or approximately 0.18 percent of the global stablecoin market.

The structural advantage favoring dollar stablecoins extends beyond simple supply figures. The Kansas City Federal Reserve estimated that as of late 2025, nearly 49 percent of stablecoins were used as trading assets across exchanges, finance protocols, and infrastructure, while traditional payments accounted for less than one percent of stablecoin activity. CEX.IO data for the first quarter of 2026 showed stablecoins comprising 75 percent of all crypto trading volume, with USDT alone capturing 68 percent of total crypto volume and 86 percent of stablecoin trading volume.

Qivalis Targets Institutional Use Cases for Euro-Denominated Settlement

The Qivalis initiative aims to address what its backers describe as a structural gap in European on-chain finance. European corporates conducting payroll, tax obligations, and accounting in euros face currency risk when settling blockchain-based transactions through dollar-denominated stablecoins. The consortium argues that a native euro stablecoin with broad banking distribution could reduce friction in cross-border settlement and trade finance within the eurozone.

The timing of the launch coincides with the European Union Markets in Crypto-Assets regulation framework reaching full implementation. MiCA establishes licensing requirements and reserve standards for stablecoin issuers operating within the EU, creating a regulatory environment that could favor domestically compliant euro-denominated tokens over offshore dollar alternatives for certain institutional applications.

United States Policy Reinforces Dollar Stablecoin Supremacy

While Europe builds euro-denominated infrastructure, United States policy is moving to entrench the dollar stablecoin ecosystem further. The GENIUS Act, which advanced through Congress in recent months, requires stablecoin issuers to back their tokens with dollar reserves and US Treasuries. A White House fact sheet described the legislation as strengthening the dollar status as a reserve currency and increasing demand for government debt. This creates a regulatory feedback loop in which dollar stablecoins receive explicit policy support, potentially widening the gap that euro alternatives must close.

Risks and Uncertainties Facing Euro Stablecoin Adoption

The 450-to-1 gap between dollar and euro stablecoin supply represents a significant structural challenge for Qivalis and similar initiatives. Network effects in stablecoin markets tend to be self-reinforcing: traders use the deepest pairs, applications integrate the most liquid tokens, and market makers maintain dollar-stablecoin inventory because that is where volume concentrates. Breaking this cycle requires not only institutional adoption but also sufficient liquidity across decentralized finance protocols and centralized exchanges.

Regulatory fragmentation within Europe could also slow adoption. While MiCA provides a unified framework, national implementation timelines and banking supervisory approaches vary across the 15 countries represented in the consortium. Whether 37 banks can coordinate distribution, liquidity provision, and technical integration across multiple jurisdictions remains an open question. The project also faces competition from existing euro stablecoin issuers, including Circle and Societe Generale, who have already established market positions.

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