The Qivalis consortium, comprising 12 major European banks, has announced plans to launch a euro-pegged stablecoin in the second half of 2026. This initiative marks a significant move by the European banking sector to establish a regulated, euro-backed digital currency as an alternative to the dominant dollar-pegged stablecoins. The consortium includes prominent banks such as CaixaBank, BNP Paribas, and ING, aiming to enhance Europe's digital sovereignty. The euro stablecoin will be backed by a robust reserve mechanism, with at least 40% held in bank deposits and the remainder invested in high-rated short-term eurozone government bonds. This structure is designed to ensure liquidity and stability, distinguishing it from many existing stablecoins. The initiative reflects a strategic effort by European financial institutions to participate in the evolving on-chain financial infrastructure, potentially attracting more institutional investors to the digital asset space.