Europe’s 37-bank stablecoin push tests whether on-chain finance defaults to euros or dollars

A notable development has hit the crypto markets. The euro-denominated stablecoin consortium Qivalis has received backing from 37 banks across 15 countries, and the asset is planned to launch in the second half of the year. ING noted that stablecoins already serve wholesale cross-border payments and blockchain-based bond settlement, but most of that activity is denominated in US dollars, creating currency exposure for European corporates whose payroll, taxes, and accounting are denominated in euros. DeFiLlama puts the global stablecoin market at $322.

1 billion, with USDT at $189. 6 billion and USDC at $76. 3 billion, accounting for 82.

Market Dynamics

5% of the total supply. 9 million EURC in circulation as of May 18, while SG-FORGE's EURCV stands at €105. Those two leading euro tokens together equal roughly $572 million, about 0.

18% of the global stablecoin market, and now Europe's distribution play must close a roughly 450-to-1 window before it can contest the rails. Dollar stablecoins USDT and USDC hold $265. 9 billion of the $322.

1 billion stablecoin market, dwarfing euro alternatives EURC and EURCV at $572 million combined. Why the dollar's lead is structural The Kansas City Fed estimated that as of November 2025, 48. 8% of stablecoins were used as trading assets across exchanges, finance protocols, and infrastructure, while traditional payments accounted for only 0.

Market Impact

7% of stablecoin use. IO's data for the first quarter shows stablecoins accounting for 75% of all crypto trading volume, with USDT alone accounting for 68% of all crypto volume and 86% of stablecoin trading volume. Traders use the deepest pairs, applications integrate the most liquid tokens, and market makers carry dollar-stablecoin inventory because that is where volume flows.

The White House fact sheet on the GENIUS Act states that the law will strengthen the dollar's status as a reserve currency and increase demand for US Treasuries by requiring stablecoin issuers to back their assets with dollars and Treasury bills. The Kansas City Fed estimates 48. 8% of stablecoins serve as trading assets, with traditional payments at just 0.

7% of stablecoin use as of November 2025. ECB President Christine Lagarde responded in May 2026 by noting that every dollar stablecoin that scales also scales up demand for dollar-backed assets, and cited a research finding that a $3. 5 billion inflow into dollar stablecoins can lower three-month Treasury bill yields by 2.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.