A consortium of a dozen European banks, including BNP Paribas, ING, and UniCredit, plans to launch a euro-pegged stablecoin in the second half of 2026. The initiative, formed as the Qivalis consortium, aims to counter US dominance in digital payments and reduce European dependence on non-European payment systems.
Related Brief 14h ago
stablecoins China Could Launch a Yuan-Backed Stablecoin in 3 to 5 Years, Circle CEO Says
China could launch a yuan-backed stablecoin within three to five years to expand the yuan's role in global finance, according to Circle CEO Jeremy Allaire. A stablecoin pegged to the yuan could offer faster and cheaper cross-border transactions, making it a tool for currency competition in a digital age. Circle’s CEO said this would represent a major shift in China’s approach to digital assets, given its 2021 ban on cryptocurrency trading and mining. Circle’s own US dollar-backed stablecoin, USDC, grew 72% year-on-year to $75.3 billion in circulation by the end of 2025. Hong Kong, a key hub for cross-border payments, is seen as a potential partner for integrating yuan and Hong Kong dollar stablecoins into global platforms. Meanwhile, the US Clarity Act could limit how stablecoins are marketed as interest-bearing bank products, potentially affecting distributors more than issuers.
French Finance Minister Roland Lescure called the current imbalance between euro and dollar stablecoins "unsatisfactory." The disparity is reflected in circulation figures: Tether has over $185 billion in dollar-pegged tokens, while Societe Generale's EURCV, launched in 2023, has 107 million euros ($126 million) in circulation.
Related Brief 2d ago
central bank digital currency Who Controls the Won Stablecoin Will Depend on Who Can Verify You
Who runs a won stablecoin will depend not on balance sheets, but on who can verify identity. Shin Hyun-song, nominee for Bank of Korea governor, said the operator of a won-denominated stablecoin should be chosen based on know-your-customer (KYC) capabilities—not whether it is a bank. Banks, he acknowledged, currently dominate in KYC infrastructure, which explains their expected leading role. But that dominance does not translate into an exclusive right. Fintech companies could also operate stablecoins if they organize into a consortium capable of meeting verification and compliance standards. The model would preserve private-sector innovation while ensuring regulatory rigor. Shin emphasized that stablecoins and deposit tokens built on a central bank digital currency (CBDC) are not interchangeable; they serve different functions and must be designed accordingly. They could coexist, not compete. Any framework for stablecoins must also account for foreign-exchange transaction regulations, a constraint unique to national currency stability. The consequence is a shift in authority: control over digital won infrastructure will flow to whoever can reliably authenticate users, not whoever holds the most deposits. A regulatory framework for won stablecoins will prioritize functional capacity over institutional identity, opening the door to non-bank operators with robust KYC systems.
Lescure urged banks to explore tokenized deposits and voiced support for the European Central Bank's development of a digital euro to serve as the anchor for tokenization efforts. Two-thirds of European banks surveyed by RBC Capital Markets report that demand for stablecoins remains limited, with current use primarily concentrated in cryptocurrency trading rather than general payments.
Related Brief 1d ago
regulation Stablecoin issuers must block sanctioned wallets in secondary markets—or face liability
Permitted payment stablecoin issuers must now actively prevent sanctioned individuals—from comprehensively restricted jurisdictions or on official watchlists—from using their tokens in secondary markets, including in peer-to-peer transfers between unhosted wallets. If they fail to do so, they risk liability for sanctions violations, even if they aren’t directly involved in the transactions. This obligation is part of a proposed rule issued on April 8, 2026, by FinCEN and OFAC under the GENIUS Act, which sets out the regulatory framework for stablecoin issuers before the full regime takes effect in January 2027. While issuers won’t be required to continuously monitor secondary market activity or file suspicious activity reports on it, they must maintain the technical ability to freeze or block funds when law enforcement issues an order. More significantly, they must proactively stop sanctioned parties from transacting at all. The rule treats partnerships between issuers and exchanges as correspondent accounts under Section 311 of the USA PATRIOT Act, subjecting them to heightened oversight. Issuers will also need to conduct risk assessments of their stablecoin’s technical design—especially smart contract functions like freezing balances—and update those assessments whenever they alter the code or expand to new blockchains. In primary markets, where issuers directly handle issuance or redemption, full transaction monitoring and SAR filings remain mandatory. But in secondary markets, where transactions occur without issuer involvement, the focus shifts from surveillance to prevention. To meet this standard, the Treasury encourages the use of blockchain analytics tools that can automatically flag and block sanctioned wallets at the protocol level. Elliptic, which analyzed the proposal, notes that these capabilities are no longer optional—they are essential for compliant operation in the US market.
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