⦿ Executive Snapshot

• What: Qivalis consortium, including 25 banks, plans to launch a euro-linked stablecoin by the second half of 2026.
• Who: Banco Sabadell, Dutch central bank, CEO Jan-Oliver Sell, Sir Howard Davies.
• Why it matters: This initiative aims to enhance payment services in Europe while ensuring compliance with EU regulations, addressing the growing demand for euro-linked stablecoins.

⦿ Key Developments

• The first issuance of the euro-linked stablecoin is set for the second half of 2026, supporting faster, cheaper, and more secure payment services.
• Qivalis will be supervised by the Dutch central bank and comply with the EU’s MiCA regulation.
• The stablecoin will be fully backed by euro reserves in a 1:1 ratio to maintain value stability.
• With the addition of Banco Sabadell and 24 other organizations, Qivalis now includes 37 financial institutions across 15 European countries.
• The market value of stablecoins exceeds $290 billion, but euro-linked stablecoins account for only 0.2% of global circulation, highlighting a significant growth opportunity.

⦿ Strategic Context

• The launch of Qivalis aligns with Europe's ambition to establish a robust and compliant digital currency infrastructure amid rising global competition in digital finance.
• The initiative reflects a broader narrative of banks and financial institutions seeking to integrate blockchain technology into traditional financial services for improved efficiency and resilience.

⦿ Strategic Implications

• Immediate implications include the potential for enhanced transaction efficiency and reduced costs in cross-border payments, positioning European banks competitively.
• Long-term implications involve establishing the euro as a primary settlement currency in the digital economy, enhancing the EU's strategic autonomy in global finance.

⦿ Risks & Constraints

• Regulatory challenges could arise as the consortium navigates compliance with evolving cryptocurrency regulations in Europe.
• Competition from existing stablecoin providers and technological dependencies may hinder the adoption and scalability of the euro-linked stablecoin.

⦿ Watchlist / Forward Signals

• Anticipated regulatory authorization from the Dutch central bank for Qivalis to operate as an e-money institution.
• The success of the euro-linked stablecoin will be indicated by the uptake and utilization of the stablecoin in cross-border transactions and digital asset settlements.