AIB has joined a consortium of 37 European banks that are developing a euro-backed stablecoin, a digital asset that it says will allow it to offer Irish consumers and investors new methods of payment and settlement. Called Qivalis, the joint venture was established in September last year and is targeting the second half of this year for its product launch.Today, 25 new European banks, including AIB, are joining the consortium, which was initially set up by 12 big European lenders, including France’s BNP Paribas, Spain’s BBVA and CaixaBank and Dutch lender ING.The group intends to develop a regulated stablecoin, denominated in euros and backed by bank deposits and other assets. AIB said the stablecoin will be fully compliant with the European Union’s Markets in Crypto Assets Regulation (MiCAR), which came into force in the summer of 2023. “We are investing in this consortium because we believe Europe needs trusted, regulated innovation in payments and settlement,” said Geraldine Casey, managing director of retail banking at AIB. “Qivalis will provide access to a euro-denominated stablecoin that is being developed to operate within the EU regulatory framework. “This is a practical step for AIB to learn, innovate, test and collaborate with other leading European banks, and to help shape how new forms of digital money can be used safely, responsibly and within the regulated banking system.”Stablecoins are similar to crypto assets. However, unlike Bitcoin and Ethereum, which are subject to wild value fluctuations, they are often pegged 1:1 to the value of a traditional asset, typically a currency like the US dollar.It means investors and users can easily convert their holdings back into traditional assets.