French banking group ODDO BHF has launched EUROD, a euro-backed stablecoin that is compliant under the EU's Markets in Crypto-Assets (MiCA) regulatory framework, representing a digitized version of the euro. This move signifies the 175-year-old traditional bank's expansion into the regulated blockchain finance sector.

Stablecoin Structure and Launch Details

EUROD was launched by ODDO BHF in collaboration with infrastructure provider Fireblocks. Issued on the Polygon network to enable fast and low-cost transactions, the stablecoin is fully backed by euro reserves and subject to external audits. It will be listed on the Spanish exchange Bit2Me, one of the first platforms authorized under MiCA, allowing it to operate across the EU.

The MiCA Regulatory Context

The MiCA regulations, which came into effect this year, require stablecoin issuers to maintain 1:1 reserves, guarantee redeemability, and adhere to strict governance and transparency standards. The launch of EUROD will test MiCA's effectiveness in harmonizing digital asset regulation across the EU. European Central Bank President Christine Lagarde has warned that foreign stablecoins lacking robust regulatory equivalence could trigger a reserve run in the eurozone and has urged lawmakers to restrict issuance rights to EU-authorized entities.

European Institutional Momentum

With the implementation of MiCA, multiple European financial institutions are accelerating their stablecoin initiatives. Société Générale has launched EURCV; Deutsche Börse has integrated Circle's EURC; and a consortium of nine European banks, including ING, CaixaBank, and Danske Bank, plans to launch a MiCA-compliant euro stablecoin in 2026, later joined by Citigroup. Separately, ten G7 banks, including Citigroup and Deutsche Bank, are exploring a multi-currency stablecoin to modernize clearing processes.

Market Position and Strategic Importance

The total market capitalization of euro-backed stablecoins remains relatively small, under $574 million, dwarfed by the over $160 billion market for dollar-linked stablecoins. Circle's EURC currently dominates this niche. Regulators believe that transparently managed, euro-denominated digital assets can help bolster the EU's financial sovereignty. For ODDO BHF, EUROD is a strategic move to attract institutional clients through compliance and credibility. The stablecoin's success will ultimately depend on its adoption by payment providers and investors seeking reliable euro alternatives in the digital economy.

French banking group ODDO BHF has launched EUROD, a euro-backed stablecoin that is compliant under the EU's Markets in Crypto-Assets (MiCA) regulatory framework, representing a digitized version of the euro. This move signifies the 175-year-old traditional bank's expansion into the regulated blockchain finance sector.

Stablecoin Structure and Launch Details

EUROD was launched by ODDO BHF in collaboration with infrastructure provider Fireblocks. Issued on the Polygon network to enable fast and low-cost transactions, the stablecoin is fully backed by euro reserves and subject to external audits. It will be listed on the Spanish exchange Bit2Me, one of the first platforms authorized under MiCA, allowing it to operate across the EU.

The MiCA Regulatory Context

The MiCA regulations, which came into effect this year, require stablecoin issuers to maintain 1:1 reserves, guarantee redeemability, and adhere to strict governance and transparency standards. The launch of EUROD will test MiCA's effectiveness in harmonizing digital asset regulation across the EU. European Central Bank President Christine Lagarde has warned that foreign stablecoins lacking robust regulatory equivalence could trigger a reserve run in the eurozone and has urged lawmakers to restrict issuance rights to EU-authorized entities.

European Institutional Momentum

With the implementation of MiCA, multiple European financial institutions are accelerating their stablecoin initiatives. Société Générale has launched EURCV; Deutsche Börse has integrated Circle's EURC; and a consortium of nine European banks, including ING, CaixaBank, and Danske Bank, plans to launch a MiCA-compliant euro stablecoin in 2026, later joined by Citigroup. Separately, ten G7 banks, including Citigroup and Deutsche Bank, are exploring a multi-currency stablecoin to modernize clearing processes.

Market Position and Strategic Importance

The total market capitalization of euro-backed stablecoins remains relatively small, under $574 million, dwarfed by the over $160 billion market for dollar-linked stablecoins. Circle's EURC currently dominates this niche. Regulators believe that transparently managed, euro-denominated digital assets can help bolster the EU's financial sovereignty. For ODDO BHF, EUROD is a strategic move to attract institutional clients through compliance and credibility. The stablecoin's success will ultimately depend on its adoption by payment providers and investors seeking reliable euro alternatives in the digital economy.