175-year-old French bank ODDO BHF launches Euro stablecoin EUROD

French banking group ODDO BHF has launched EUROD, a euro-backed stablecoin compliant with the EU’s new Markets in Crypto-Assets (MiCA) regulation. The 175-year-old bank’s move underscores how traditional banks are expanding into the regulated world of blockchain finance. ODDO BHF, which manages over €150 billion in assets, said EUROD will be listed on the Madrid-based exchange Bit2Me. Bit2Me, backed by Telefónica, BBVA, and Unicaja, is registered with the Spanish National Securities Market Commission (CNMV) and one of the first exchanges to receive MiCA authorization, allowing it to expand its operations within the European Union. ODDO BHF partnered with infrastructure provider Fireblocks to handle custody and clearing, and EUROD was issued on the Polygon network for faster and 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" as Europe embraces regulated digital assets. The Markets in Crypto-Assets (MiCA), which came into effect this year, requires stablecoin issuers to maintain 1:1 reserves and guarantee redemption, while also enforcing strict governance and transparency standards. The launch of EUROD will test MiCA's effectiveness in coordinating digital asset regulation across the EU.

European Central Bank (ECB) President Christine Lagarde recently warned that foreign stablecoins that lack "robust and equivalent regulatory mechanisms" could trigger a run on eurozone reserves.

In a letter to the European Parliament, she urged lawmakers to limit the issuance of stablecoins to EU-authorized companies and cited the collapse of TerraUSD as an example of the risks of unregulated projects. According to CoinGecko data, the market capitalization of euro-pegged stablecoins has doubled this year, with Circle's EURC dominating the market, with its market capitalization climbing to approximately US$270 million. Under the MiCA framework, however, demand for bank-backed stablecoins such as EUR CoinVertible, issued by Societe Generale, is relatively low.

ECB advisor Jürgen Schaaf believes that Europe must accelerate its pace of innovation, otherwise it may face the risk of "erosion of monetary sovereignty."

The European Systemic Risk Board (ESRB) warned that the multi-issuer model of the same stablecoin jointly issued by EU and non-EU companies may introduce systemic risks and requires strengthened supervision. Despite these caveats, the regulatory clarity brought by MiCA has spurred 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, have formed a Dutch alliance, planning to issue a euro stablecoin that meets MiCA requirements in 2026. Citigroup subsequently joined the alliance and is expected to launch the relevant stablecoin 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 dollar-pegged stablecoins, the total market capitalization of euro-backed stablecoins remains relatively small, at less than $574 million. Regulators believe that euro-denominated digital assets, if transparently managed, will contribute to greater financial sovereignty. For ODDO BHF, EUROD represents a strategic initiative to attract institutional clients through regulatory compliance and credibility. The stablecoin's growth will depend on its acceptance by payment providers and investors, who are seeking reliable alternatives to the euro in the digital economy.