40 European Banks Launch Euro Stablecoin to Rival US Giants

ABN Amro and Rabobank have reversed course on digital currency, joining a 40-bank European coalition launching its own stablecoin later this year. The turnaround comes after both banks abandoned crypto projects in 2018 and 2019, calling digital assets too risky.

The consortium, called Qivalis, will issue a stablecoin pegged to the euro. Unlike volatile cryptocurrencies like Bitcoin, stablecoins maintain steady value by tying their worth to traditional currencies like the dollar or euro.

ING was already a founding member, and now all three major Dutch banks are pushing regulated crypto investment products in 2024. Qivalis CFO Floris Lugt called the expansion "a revolutionary moment," saying banks had previously blocked blockchain's potential by refusing to support it.

The European push comes as American companies Tether and Circle control 99% of the global stablecoin market, all denominated in US dollars. President Trump has championed dollar stablecoins as a tool to strengthen America's financial dominance worldwide.

Citigroup predicts the global stablecoin market will explode to nearly $2 trillion within four years, potentially reaching $4 trillion under optimistic conditions. European regulators worry this growth will flood their markets with digital dollars, weakening the European Central Bank's ability to control interest rates and lending.

The timing is delicate. Just two weeks ago, ECB President Christine Lagarde warned that euro stablecoins carry serious risks, arguing that if people move savings from bank accounts into stablecoins, the ECB loses leverage over the economy.

Lagarde also cautioned that a panic could trigger mass withdrawals in Europe, where consumer protections are strongest, draining the funds backing these digital currencies. "We know the dangers. We do not have to wait for a crisis to prevent them," she said.

The Ripple Effect

Lugt says Qivalis shares those concerns and is building something different. The consortium is awaiting approval from the Dutch central bank to operate as a regulated electronic money institution, meaning it would follow strict financial rules from day one.

Participating banks will contribute capital and help develop real-world applications, including faster cross-border payments and more efficient trading of digital securities. Instead of letting unregulated American companies dominate Europe's digital future, these banks are betting they can build something safer and more transparent.

The shift represents a fundamental change in how traditional European banks view digital currency: not as a threat to avoid, but as a technology they need to help shape.