Qivalis plans for a market launch in the second half of 2026.

Bank of Ireland and AIB have joined a consortium of European banks working towards issuing a euro-denominated stablecoin.

The two Irish banks joined the Qivalis consortium alongside 23 other banks – including Cecabank, Erste Group, Groupe BPCE and the National Bank of Greece – taking the group’s total strength to 37 banks from across 15 countries in the region.

The group wants to introduce euro-denominated stablecoins to expand Europe’s financial infrastructure and compete with US-backed versions, which make up the overwhelming majority of stablecoins in circulation. Big names such as Danske Bank, ING and KBC joined the consortium last September.

It is understood that each participating bank is contributing the same amount of investment to further the group’s goals. The consortium is adequately funded to start operations.

Stablecoins are a digital asset generally linked 1:1 to a chosen fiat currency. These digital assets allow for round-the-clock liquidity and near instant settlements.

The combined market capitalisation of all stablecoins exceeds $300bn, with around 90pc of it held by Tether and Circle; euro-denominated stablecoins only total around €395m, according to EU figures from November – or around 0.2pc of the total in circulation, according to Qivalis.

“The euro is Europe’s currency, and on-chain financial infrastructure should carry it – built by European institutions and governed by European rules,” said Jan-Oliver Sell, the CEO of Qivalis.

Formed in 2025, Qivalis is currently in pursuit of European regulatory approval to become an authorised electronic money institution. The consortium is targeting a market launch in the second half of 2026.

“We are investing in this consortium because we believe Europe needs trusted, regulated innovation in payments and settlement,” said Geraldine Casey, the managing director of retail banking at AIB.

“Qivalis will provide access to a euro-denominated stablecoin that is being developed to operate within the EU regulatory framework.”

As part of the consortium, AIB has said that it will collaborate with other European banks to innovate payments systems.

“This is a practical step for AIB to learn, innovate, test and collaborate with other leading European banks, and to help shape how new forms of digital money can be used safely, responsibly and within the regulated banking system,” Casey added.

The European Central Bank, meanwhile, has moved to the next phase of the digital euro project, with plans for a pilot digital euro project in mid-2027 and issuance in 2029.

Howard Davies, Qivalis’s chairperson, added: “This infrastructure is essential if Europe is to compete in the global digital economy whilst preserving its strategic autonomy.

“The euro’s role in the eurozone’s monetary system will increasingly depend on whether it is present – as the primary settlement currency – on the rails where global value moves.”

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Updated, 7.45am, 21 May: The article was updated with additional information on investments made by each participating bank.