European banking consortium Qivalis has officially obtained an Electronic Money Institution (EMI) license from the Dutch central bank, De Nederlandsche Bank (DNB). The regulatory decision grants Qivalis the right to issue euro-denominated electronic money tokens while placing its entire operations under the ongoing regulatory supervision of the Dutch central bank.
The licensing approval from the Dutch central bank clears a key regulatory hurdle for Qivalis to issue a euro stablecoin in compliance with the Markets in Crypto-Assets (MiCA) regulation. This decision marks an essential step toward comprehensive compliance before the new token is circulated into the digital asset ecosystem.
Technical Requirements Ahead of Token Launch
Qivalis plans to launch and issue the euro stablecoin in the coming months. Before distribution begins, the consortium must still fulfill further technical MiCA requirements and publish an official white paper outlining the operational details of the new instrument.
An extensive banking network serves as the consortium’s primary pillar. After adding 25 new banks from 15 countries in May, the total number of financial institutions backing Qivalis has reached 37. This cross-border partnership scale is designed to support the banking infrastructure once the euro stablecoin is introduced to the market.
Challenging Tether’s 60% Dominance
The initiative by the 37-bank consortium aims to introduce a euro-denominated stablecoin into a $303 billion global stablecoin market long dominated by US dollar tokens. The dollar’s dominance is evident from Tether’s (USDT) position, which leads the market with a $183 billion capitalization and accounts for more than 60% of the world’s stablecoin market share.
This market gap is what prompted the consortium’s push. Qivalis CEO Jan-Oliver Sell emphasized that Europe must have a euro-denominated on-chain settlement asset regulated under European law and regulatory standards. According to him, reliance on foreign currencies in the blockchain sector needs to be balanced with an official instrument subject to regional oversight.
Liquidity Test Beyond Regulatory Approval
For the crypto ecosystem in Europe, the DNB approval proves that banking institutions are beginning to respond to the MiCA regulatory framework. However, meeting regulatory licensing standards is only half the battle. The real test for the 37-bank consortium lies in market adoption: whether traders and on-chain users are willing to shift their transaction liquidity to the euro stablecoin, or remain anchored in entrenched dollar liquidity.
Source: Cointelegraph.
Also read: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
