Two of Ireland’s largest banks, Bank of Ireland and AIB, have joined a growing European banking consortium aiming to develop a fully regulated euro-denominated stablecoin, as traditional financial institutions accelerate efforts to shape the future of digital payments infrastructure in Europe.
The banks confirmed they have become members of Qivalis, a European banking initiative focused on launching a euro-backed stablecoin designed for large-scale payments and settlement across blockchain-based financial networks.
The move reflects increasing momentum among European banks to build regulated digital money infrastructure that can compete with the growing dominance of US dollar-backed stablecoins and emerging private digital payment ecosystems.
Stablecoins are digital assets designed to maintain a fixed value by being backed by reserve assets such as fiat currencies. Unlike more volatile cryptocurrencies, they are intended to support everyday payments, settlement, and financial transfers with reduced price fluctuations.
Currently, euro-denominated stablecoins account for only a small fraction of global stablecoin circulation, highlighting Europe’s limited presence in the rapidly expanding digital asset payments market.
European Banks Push For Digital Euro Payments Infrastructure
According to Bank of Ireland, participation in Qivalis supports its wider digital innovation strategy and aligns with efforts to modernise payment and settlement systems across Europe.
The consortium aims to develop a stablecoin fully backed 1:1 by the euro and operating under European regulatory frameworks, including compliance with MiCAR, the European Union’s crypto-assets regulation. The initiative is expected to operate under the supervision of the Dutch central bank.
The banks said blockchain-based settlement infrastructure could enable faster and more efficient money movement compared to traditional banking rails, allowing transactions to settle around the clock with fewer intermediaries involved.
AIB said its investment in the consortium strengthens its ability to support payments innovation while collaborating with other European banking institutions on regulated digital finance initiatives.
Qivalis Expands Across Europe Ahead Of Planned 2026 Launch
Qivalis also announced a significant expansion of the consortium, with 25 additional European banks joining the initiative, extending its footprint across 15 countries.
The consortium said it continues to work with regulators while progressing operational and technical development ahead of a targeted launch in the second half of 2026.
Billy O’Connell, Chief Strategy Officer at Bank of Ireland, said the initiative represents an opportunity to strengthen Europe’s financial infrastructure while supporting the responsible evolution of digital money and payment systems.
What this means for the industry
- European banks are becoming more aggressive in developing regulated alternatives to dollar-backed stablecoins.
- Stablecoins are increasingly being viewed as payment infrastructure rather than purely crypto trading assets.
- Traditional banks are moving deeper into blockchain-based settlement networks to remain competitive in digital finance.
- MiCAR regulation is encouraging more institutional participation in Europe’s digital asset ecosystem by providing clearer legal frameworks.
- The race to establish a trusted euro-denominated stablecoin could become strategically important for Europe’s financial sovereignty and payments independence.
