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French banking group ODDO BHF has launched euro-backed stablecoin EUROD, a digital version of the euro that is compliant under the EU’s new Markets in Cryptoassets Regulation (MiCA).
The 175-year-old bank’s move highlights traditional banks’ gradual expansion into the regulated blockchain financial sector.
Over €150 billion in assets under managementThe ODDO BHF said EUROD will be listed on Madrid-based exchange Bit2Me.
Bit2Me is backed by Telefonica, BBVA and Unicaja. It has been registered with the Spanish National Securities Market Commission (CNMV) and is one of the first exchanges to receive MiCA authorization, which allows it to expand its business within the EU.
ODDO BHF partners with infrastructure provider Fireblocks to handle custody and clearing, and EUROD is issued on the Polygon network to enable faster, lower-cost transactions.The token is fully backed by Euro reserves and is subject to external audits.
Bit2Me CEO Leif Ferreira said the listing “builds a bridge between traditional banks and blockchain infrastructure” amid Europe’s embrace of regulated digital assets.
The Cryptoasset Market Regulation (MiCA), which came into force this year, requires stablecoin issuers to maintain 1:1 reserves and guarantee redeemability, while enforcing strict governance and transparency standards.
The launch of EUROD will test MiCA’s practical effectiveness in harmonizing digital asset regulation across the EU.
European Central Bank (ECB) President Christine Lagarde recently warned that foreign stablecoins lacking “sound equivalent regulatory mechanisms” could trigger a run on the euro zone’s reserves.
In a letter to the European Parliament, sheUrge lawmakers to restrict stablecoin issuance to EU-authorized companies,And cited the collapse of TerraUSD as an example of the risks of unregulated projects.
The market value of euro-pegged stablecoins has doubled this year, with EURC issued by Circle dominating the market, climbing to about $270 million in market capitalization, according to CoinGecko data.
Under the MiCA framework,Demand for banking stablecoins such as EUR CoinVertible issued by Société Générale is relatively low.
European Central Bank adviser Jürgen Schaaf believes that Europe must accelerate the pace of innovation or risk “erosion of monetary sovereignty.”
The European Systemic Risk Board (ESRB) warned that the multi-issuer model in which EU and non-EU companies jointly issue the same stable currency may introduce systemic risks and requires strengthened supervision.
Despite these warnings,Regulatory clarity brought by MiCA still generates market competition:
Societe Generale’s FORGE unit launched the euro stablecoin EURCV; Deutsche Börse partnered with Circle to integrate EURC and USDC into its trading system.
Nine European banks, including ING, Spain’s CaixaBank and Denmark’s Danske, formed the Dutch Alliance, which plans to issue a euro stablecoin that complies with MiCA requirements in 2026. Citigroup subsequently joined the alliance and is expected to launch related stablecoins in the second half of 2026.
at the same time,Ten G7 banks, including Citigroup and Deutsche Bank, are exploring the issuance of multi-currency stablecoins, to modernize clearing processes and enhance global liquidity.
Compared to the over $160 billion in USD-pegged stablecoins, the total market capitalization of euro-backed stablecoins remains small at less than $574 million.
Regulators believe that euro-denominated digital assets will help strengthen financial sovereignty if managed transparently.
For ODDO BHF, EUROD is a strategic move to attract institutional clients through compliance and credibility.
The development of the stablecoin will depend on its adoption by payment providers and investors, who are looking for a reliable alternative to the euro in the digital economy.
