ODDO BHF's EUROD: Europe's Bid to Rival US Stablecoins Under MiCA

French Banking Giant ODDO BHF Rolls Out EUROD Stablecoin Under MiCA Framework

One of France's oldest financial institutions, ODDO BHF, has entered the cryptocurrency market with the launch of EUROD, a euro-backed stablecoin compliant with the EU's Markets in Crypto-Assets (MiCA) regulation, according to a Cryptotimes report. The 175-year-old bank, which manages over €150 billion in assets, aims to bridge traditional finance and blockchain technology by offering a regulated, low-volatility digital euro for both retail and institutional users, as reported by Cryptonomist. The stablecoin, which debuted on Madrid-based exchange Bit2Me, is backed by major institutions including Telefónica, Unicaja, and BBVA, according to KuCoin.

EUROD's launch marks a significant shift in Europe's financial landscape, where banks are increasingly exploring blockchain-based solutions to modernize payments and settlements, as noted in a CoinDesk report. By anchoring the stablecoin to the euro and adhering to MiCA's stringent oversight, ODDO BHF seeks to address concerns around transparency and stability that have historically plagued the stablecoin market. The token's design mirrors efforts by other European banks to develop compliant alternatives to U.S.-dominated stablecoins like USDT and USDC, according to a JU blog post.

Bit2Me, which received €30 million in funding led by Tether earlier this year, will serve as the primary listing platform for EUROD. The exchange's CEO, Leif Ferreira, emphasized that the move aligns with Bit2Me's mission to provide "trusted and compliant digital assets." The partnership leverages Bit2Me's regulatory approval in Spain and its expanding presence in Latin America, positioning EUROD to reach both European and Spanish-speaking markets.

The timing of EUROD's release coincides with broader European efforts to establish a competitive stablecoin ecosystem. A consortium of nine major banks—including ING, CaixaBank, and UniCredit—has also announced plans to issue a MiCA-compliant euro stablecoin by late 2026, according to a UniCredit press release. These initiatives reflect a strategic push to reduce reliance on U.S. dollar-backed tokens and strengthen the euro's role in digital finance. Fiona Melrose of UniCredit highlighted that such projects aim to "pave the way for a new standard in the digital asset space" while supporting Europe's financial sovereignty.

Regulatory developments in Europe contrast sharply with the U.S., where Tether and other stablecoin issuers have resisted similar oversight. Tether's CEO, Paolo Ardoino, has criticized MiCA's reserve requirements and privacy implications, arguing that the framework could destabilize stablecoins during liquidity crises, as discussed in a Cointelegraph explainer. However, ODDO BHF's compliance-driven approach underscores Europe's commitment to balancing innovation with financial stability.

Analysts note that EUROD's success will depend on its adoption by institutions and its ability to integrate with existing payment systems. The stablecoin could facilitate faster cross-border transactions, programmable payments, and tokenized asset settlements, aligning with the EU's broader digital finance strategy. Meanwhile, the growing competition among euro-backed stablecoins may drive down costs and improve efficiency for users.

As Europe's financial sector embraces blockchain, the line between traditional banking and crypto continues to blur. ODDO BHF's venture into stablecoins not only signals confidence in the technology but also reflects a broader industry trend: the pursuit of regulated, institutional-grade digital assets in an increasingly fragmented global market.

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