BNP Paribas, France's largest bank by assets, said on Tuesday it is joining nine other European banks in a joint venture focused on issuing a stablecoin as traditional financial firms chase the fast-growing digital asset class.

The bank joins an Amsterdam-based initiative named Qivalis that is backed by lenders including ING, UniCredit and CaixaBank. The group has applied for an electronic money license from the Dutch Central Bank and plans to roll out the stablecoin in the second half of 2026, according to a release.

The venture tapped Jan-Oliver Sell as CEO. Sell previously served as an executive at crypto exchange Coinbase's (COIN) operation in Germany.

The move is aimed at building digital payment infrastructure in Europe that is blockchain-native and compliant with the European Union's Markets in Crypto-Assets (MiCA) regulations. BNP Paribas said the initiative will support the development of onchain payment systems designed to meet the needs of corporate clients while aligning with regulatory requirements.

Stablecoins, blockchain-based cryptocurrencies with prices tied, predominantly, to fiat money, are rapidly expanding as a cheaper, faster cross-border payments alternative. The 10 banks backing Qivalis aim to leverage their vast global foothold in finance to offer an alternative to the dollar-pegged stablecoins like USDT and USDC that dominate the $300 billion asset class.

The euro-denominated tokens have lagged in gaining traction, recording only a $670 million supply. French lender Société Générale's euro token (EURCV) debuted in 2023 and now has a market value of $62 million. U.S.-based issuer Circle Internet's (CRCL) EURC is the market leader with $330 million.

Qivalis is building out its governance framework and expects to receive regulatory approval ahead of the planned 2026 debut, the press release added.

Read more: ECB Doubles Down on Warning That Stablecoins Could Pose Global Financial Risks