Can European Stablecoins Become a Serious Business Payment Alternative?

European banks are preparing to issue digital currencies backed by euros and Swiss francs. With Qivalis securing regulatory approval and Swiss institutions testing their own payment system, businesses may soon have another way to move money across borders. Whether it can compete with established banking services will depend on cost, reliability and access.

A consortium of 37 European banks has moved closer to launching a euro-denominated stablecoin after receiving regulatory approval in the Netherlands on 14 October 2026. Meanwhile, nine Swiss financial and payments companies, including UBS, SIX and TWINT, are testing a Swiss-franc stablecoin in a controlled environment.

The two initiatives mark a growing interest among established financial institutions in using blockchain technology for payments rather than leaving the market largely to cryptocurrency companies. Both are investigating whether digital tokens linked to conventional currencies can make financial transactions faster and easier to manage.

For companies making international payments, stablecoins could offer a faster and cheaper alternative to conventional bank transfers, which often pass through several institutions and incur additional fees. Businesses could transfer funds directly over blockchain networks, although recipients would still need to convert stablecoins into conventional currency to use the money outside those networks. European banks now have to demonstrate whether the technology offers advantages over existing payment systems, which have themselves become faster and more efficient.

Europe’s Banks Prepare Their Own Digital Euro

Qivalis, an Amsterdam-based company backed by banks from 15 European countries, received authorisation as an electronic money institution from De Nederlandsche Bank on 14 October. The licence allows the company to issue electronic money tokens, subject to the applicable requirements under the European Union’s Markets in Crypto-Assets Regulation (MiCA), including publication of its white paper. The company plans to begin issuing its euro-denominated stablecoin within the next few months. Among the banks supporting the consortium are BNP Paribas, ING, UniCredit, BBVA, DZ Bank and Erste Group. Qivalis intends to distribute the token through financial institutions, payment service providers, exchanges and market infrastructure companies. Its proposed customers therefore include businesses that may eventually use the currency through their existing financial service providers rather than dealing directly with the issuer. The consortium’s expansion also reflects a wider concern among European financial institutions about the dominance of dollar-denominated stablecoins. Although the euro plays a major role in international trade and finance, the stablecoin market remains overwhelmingly denominated in US dollars. Qivalis hopes that a regulated euro alternative, supported by established banks, will give European businesses a way to use blockchain payments without making the dollar their default digital settlement currency.

Switzerland Is Testing a Different Approach

Swiss banks are also examining how stablecoins could fit into their financial infrastructure, although their initiative remains at an earlier stage. In April 2026, UBS, PostFinance, Sygnum, Raiffeisen, Zürcher Kantonalbank, Banque Cantonale Vaudoise and Swiss Stablecoin AG announced a joint testing programme for a Swiss-franc stablecoin.

SIX and TWINT joined the project in September, bringing the number of participating companies to nine. The partners are now testing selected applications using CHFD, a digital token designed to maintain a value of CHF 1 for each token.

CHFD has been technically operational within the sandbox since the end of June. The tests operate with a restricted group of participants and transaction limits, allowing the institutions to examine how payments work under controlled conditions.

The Swiss project extends beyond international transfers because its participants are testing automated transactions between financial institutions, settlement of tokenised financial assets and programmable payments. The consortium is investigating whether payments linked to predefined conditions could reduce fraud on online marketplaces, support fairer distribution of event tickets or improve the processing of public-sector payments.

A marketplace payment, for example, could potentially be released automatically once agreed conditions have been fulfilled, reducing the need for a separate intermediary to manage the transaction. Whether such arrangements work reliably, and who resolves disputes when something goes wrong, remains a matter for testing.

The Swiss partners expect the test phase to continue until the end of 2026. They have explicitly stated that participation does not amount to a decision to launch a Swiss-franc stablecoin commercially.

Where Businesses Could Benefit

Cross-border payments offer one of the clearest potential applications, particularly for companies that regularly move funds between subsidiaries, suppliers and financial institutions.

A Swiss business paying a supplier in the eurozone may currently need to convert francs into euros and arrange an international bank transfer. Depending on the service used, the payment can involve foreign-exchange charges, banking fees and delays before the recipient can use the money.

A stablecoin payment could shorten the blockchain transfer and settlement stage. If both parties use compatible systems and can obtain or redeem the tokens efficiently, the process may become simpler.

The currency conversion would still be necessary, however. A CHF-denominated token does not eliminate the cost of converting francs into euros, and a blockchain transaction may introduce its own fees.

Corporate treasury departments could also benefit from moving liquidity between accounts or business entities outside normal banking hours. Qivalis is developing its system with round-the-clock transfers in mind, potentially allowing companies to use funds more quickly across different markets.

Another application concerns tokenised financial assets, including digital representations of bonds, securities and other contractual claims.

In a conventional securities transaction, the transfer of an asset and the corresponding payment may involve separate processes. Blockchain infrastructure can potentially allow both sides to settle together, reducing the period in which either counterparty is exposed to the other.

These applications have commercial promise, but companies will need evidence of actual transaction costs, processing times and operational reliability before deciding to change their payment arrangements.

Regulation Will Shape the Market

The EU and Switzerland are approaching stablecoins through different regulatory frameworks.

Under MiCA, euro-denominated electronic money tokens are subject to rules on issuance, reserves, disclosure and redemption. Holders have the right to redeem their tokens at par value, while issuers must safeguard the money received in exchange for them.

At least 30% of those funds must be held in separate accounts with credit institutions, with the remainder invested in qualifying low-risk, highly liquid assets.

These requirements give businesses clearer information about the legal rights attached to a token and the obligations of its issuer. They do not remove operational risks, including technical failures, cyberattacks or problems involving intermediaries.

In Switzerland, FINMA has warned that stablecoin arrangements can create risks for both token holders and banks providing default guarantees. The regulator has also emphasised the need to address money laundering, sanctions compliance and the legal treatment of customer funds.

Regulatory differences between Switzerland and the EU could determine which stablecoins financial institutions can offer, how customers redeem their holdings and what happens if an issuer fails. Companies considering stablecoin payments need to check the terms of each product, particularly redemption rights and the protection of reserve assets, rather than assume that all currency-backed tokens carry the same safeguards.

Can Stablecoins Compete With Existing Payment Systems?

European and Swiss businesses already have access to established banking networks, instant payment services and specialised international payment providers.

In the euro area, instant payments allow funds to reach recipients within seconds through regulated banking infrastructure. Switzerland has also introduced instant payments, providing another reason for stablecoin issuers to prove that their technology solves problems existing services cannot address.

Blockchain settlement could help companies transfer tokenised assets, automate payments and move money between systems that conventional banking networks cannot easily connect.

Other questions remain unresolved. Customers must be able to obtain tokens, hold them securely and redeem them without unexpected delays. Payment providers need sufficient liquidity, clear procedures for mistaken transfers and reliable connections between blockchain networks and bank accounts.

Cost comparisons will also have to include foreign exchange, custody, compliance, transaction processing and redemption, rather than looking only at blockchain fees.

For Qivalis, its network of participating banks could help establish distribution and customer confidence. The Swiss consortium, meanwhile, is testing applications with companies already involved in the country’s financial infrastructure and everyday payments.

Neither initiative has yet demonstrated that stablecoins can replace established business payment services at scale. Their progress nevertheless suggests that banks increasingly expect blockchain-based money to become part of the financial products they offer corporate customers.

Exporis Insight: How to Explain a Stablecoin Product to Business Customers

Stablecoin providers face a communications challenge alongside the technical and regulatory work. Corporate customers need to understand what the product does, how it fits into their existing processes and what risks they would assume by using it.

Start with the business application. Explain whether the product supports cross-border supplier payments, treasury transfers, securities settlement or another identifiable requirement. Describe the process from the customer’s perspective, including how money enters and leaves the system.

Make the costs visible. Businesses should be able to compare transaction charges, foreign-exchange costs, custody fees and redemption conditions with their current arrangements. Claims about faster or cheaper payments need supporting evidence.

Explain who holds the money. Identify the issuer, the institutions responsible for reserves or guarantees, the customer’s redemption rights and the regulatory framework governing the product. Customers should also understand what happens if a service provider becomes unavailable.

Show how the product fits into existing operations. Finance teams need to know whether the service connects with their banks, accounting systems and payment approval procedures. Security, compliance and procurement teams will have their own questions before approving its use.

For fintech companies introducing unfamiliar financial products, clear communication is part of winning customers. Exporis helps financial and technology businesses explain complex services through specialist content, product positioning and digital communications aimed at the people making purchasing decisions.