Traditional finance embraces innovation: French centennial bank ODDO BHF launches Euro stablecoin EUROD under the MiCA framework

French banking group ODDO BHF has launched EUROD, a euro-backed stablecoin compliant with the EU's MiCA regulation. This move by the 175-year-old bank highlights traditional finance's expansion into regulated blockchain finance.

Key points:

EUROD is issued on the Polygon network for faster, cheaper transactions and is fully backed by euro reserves with external audits.
The stablecoin will be listed on Bit2Me, one of the first MiCA-authorized exchanges in the EU.
MiCA requires stablecoin issuers to maintain 1:1 reserves and guarantee redemption while enforcing strict governance standards.
ECB President Christine Lagarde has warned about risks from foreign stablecoins lacking robust regulation.
The euro stablecoin market is growing, with multiple European banks planning their own MiCA-compliant stablecoins, including a consortium of nine banks plus Citigroup.
Despite growth, euro-backed stablecoins remain a small market ($574M) compared to dollar-pegged stablecoins ($160B+).
EUROD represents ODDO BHF's strategic move to attract institutional clients through compliance and credibility in the evolving digital asset landscape.

French banking group ODDO BHF has launched the euro-backed stablecoin EUROD, a digital version of the euro that complies with the EU’s new Markets in Crypto-Assets (MiCA) regulation.

The 175-year-old bank's move underscores how traditional banks are gradually expanding into the regulated blockchain finance sector.

ODDO BHF, which manages more than 150 billion euros in assets, said EUROD will be listed on Madrid-based exchange Bit2Me.

Bit2Me, which is backed by Telefónica, BBVA, and Unicaja, is registered with the Spanish National Securities Market Commission (CNMV) and is one of the first exchanges to receive MiCA authorization, allowing it to expand its business across the European Union.

ODDO BHF is partnering with infrastructure provider Fireblocks to handle custody and clearing. EUROD is issued on the Polygon network to enable 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” amid Europe’s embrace of regulated digital assets.

The Markets in Crypto-Assets (MiCA) regulation, which came into effect this year, requires stablecoin issuers to maintain 1:1 reserves and guarantee redemption, while enforcing strict governance and transparency standards.

The launch of EUROD will test the actual effectiveness of MiCA in coordinating digital asset regulation across the EU.

European Central Bank (ECB) President Christine Lagarde recently warned that foreign stablecoins that lack “robust 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, citing 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 and its market capitalization climbing to approximately US$270 million.

Under the MiCA framework, demand for bank-based stablecoins such as EUR CoinVertible issued by Societe Generale is relatively low.

European Central Bank adviser Jürgen Schaaf believes that Europe must speed up its 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 stablecoin may introduce systemic risks and requires strengthened supervision.

Despite these caveats, the regulatory clarity brought by MiCA has fostered market competition:

Societe Generale's FORGE division launched the euro stablecoin EURCV; Deutsche Börse partnered with Circle to incorporate EURC and USDC into its trading system.

Nine European banks, including ING, Spain's CaixaBank and Denmark's Danske Bank, 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.

Meanwhile, 10 Group of Seven (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 is still small, at less than $574 million.

Regulators believe that euro-denominated digital assets could help enhance financial sovereignty if managed transparently.

For ODDO BHF, EUROD is a strategic move to attract institutional clients through compliance and credibility.

The stablecoin’s development will depend on its acceptance by payment providers and investors, who are looking for a reliable alternative to the euro in the digital economy.