Spanish lenders Banco Sabadell and Bankinter are expected to join a growing European consortium developing a euro-backed stablecoin.

The initiative, known as Qivalis, is gaining traction as more financial institutions seek to establish a foothold in digital currencies tied to traditional fiat systems.

Additional Spanish participants reportedly include Abanca, Kutxabank, and Cecabank, with a formal announcement anticipated in the coming weeks.

Building a European Alternative

The consortium already includes major European institutions such as ING Group, UniCredit, BNP Paribas, CaixaBank, and BBVA.

The goal is to create a euro-denominated stablecoin that can compete with U.S.-based digital payment systems and dollar-backed stablecoins, which currently dominate global crypto liquidity.

Strategic Push Into Digital Finance

Stablecoins—digital assets designed to maintain a fixed value by being pegged to currencies like the euro or dollar—have seen rapid growth in recent years.

For European banks, participation in such projects represents both a defensive and strategic move, as cryptocurrencies and blockchain-based payment systems increasingly challenge traditional banking models.

The Qivalis initiative reflects a broader effort to integrate blockchain technology into core financial infrastructure while maintaining regulatory alignment within the European system.

Competitive Pressure From Crypto Markets

The expansion of stablecoins and decentralized finance has intensified pressure on banks to innovate.

By collaborating on a shared digital currency framework, European lenders aim to retain control over payment systems, improve cross-border efficiency, and reduce reliance on external platforms.

Outlook

As the consortium grows, the success of a euro-backed stablecoin could mark a significant shift in how traditional financial institutions engage with digital assets.

If executed effectively, the initiative may strengthen Europe’s position in the evolving global payments landscape while accelerating institutional adoption of blockchain technologies.