tl;dr
ODDO BHF, a 175-year-old French bank, launches EUROD—a euro-backed stablecoin compliant with EU’s MiCA regulations—marking a pivotal shift in bridging traditional finance and blockchain. Partnering with Bit2Me and Fireblocks, the initiative aims to redefine digital asset trust and competition in the...
**French Bank ODDO BHF Launches EUROD, a Euro-Backed Stablecoin Under EU’s MiCA Framework**
In a significant move toward integrating blockchain technology with traditional finance, French banking group ODDO BHF has launched EUROD, a euro-backed stablecoin compliant with the European Union’s new Markets in Crypto-Assets (MiCA) regulation. This initiative marks a pivotal step in the expansion of regulated digital assets within the EU, as traditional banks increasingly explore blockchain-based solutions to meet evolving market demands.
ODDO BHF, a 175-year-old institution managing over €150 billion in assets, has partnered with Madrid-based cryptocurrency exchange Bit2Me—backed by Telefónica, BBVA, and Unicaja—to list EUROD. Bit2Me, licensed under Spain’s CNMV and one of the first exchanges authorized under MiCA, will serve as the platform for trading the stablecoin. The bank also collaborated with infrastructure provider Fireblocks to handle custody and settlements, ensuring secure and efficient transactions. EUROD operates on the Polygon network, enabling faster and lower-cost transfers while maintaining full backing by euro reserves.
The launch of EUROD aligns with MiCA’s stringent requirements, which mandate one-to-one reserves for stablecoin issuers, transparent governance, and robust redemption guarantees. This framework aims to harmonize digital-asset oversight across the EU, addressing risks associated with unregulated projects. However, the European Central Bank (ECB) has cautioned against foreign stablecoins lacking “robust equivalence regimes,” warning of potential reserve runs in the eurozone. ECB President Christine Lagarde emphasized the need for strict oversight, citing the 2022 collapse of TerraUSD as a cautionary example.
Despite these risks, the euro stablecoin market is gaining traction. Euro-pegged stablecoins have doubled in market capitalization this year, with Circle’s EURC leading at approximately $270 million. However, bank-issued tokens like ODDO BHF’s EUROD face competition from initiatives such as Société Générale-FORGE’s EURCV and a consortium of nine European banks, including ING and CaixaBank, planning a MiCA-compliant euro stablecoin by 2026. Meanwhile, ten G7 banks, including Citi and Deutsche Bank, are exploring multi-currency stablecoins to modernize global settlement processes.
ODDO BHF’s entry into the digital asset space underscores the growing intersection of traditional banking and blockchain innovation. By leveraging MiCA’s regulatory clarity, the bank aims to attract institutional clients through compliance and trust. However, the success of EUROD will depend on its adoption by payment providers and investors seeking a reliable euro alternative in the digital economy.
As the EU continues to refine its approach to digital assets, the rollout of EUROD and similar initiatives will test the effectiveness of MiCA in balancing innovation with financial stability. With regulators emphasizing transparency and sovereignty, the euro stablecoin market could play a crucial role in shaping the future of digital finance in Europe.