Franco-German banking group ODDO BHF has launched a euro-pegged stablecoin under the European Union’s Market for Cryptoassets (MiCA) regulations.
According to Wednesday’s announcement, the bank will act as the issuer of the EUROD stablecoin, with market-making platform Flowdesk providing liquidity and Fireblocks providing the tokenization infrastructure.
Guy de Rousse, deputy chief operating officer at ODDO BHF, said the group “felt it was essential to offer a euro-denominated European solution as an alternative to USD-denominated stablecoins.”
Stablecoins are digital tokens pegged to traditional currencies such as the euro. The new token will initially be listed on the Spain-based cryptocurrency exchange Bit2Me.
ODDO BHF is a privately owned European financial group created in 2016 through the merger of France’s ODDO Bank, founded in 1849, and Germany’s BHF-BANK, founded in 1854. The bank says it has operations in France, Tunisia, Germany and Switzerland.
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European stablecoins are on the rise
Until now, the stablecoin market has been dominated by dollar-pegged tokens. Tether’s USDt (USDT) and Circle’s USDC (USDC) remain the two largest players in the world, accounting for more than 83% of the $306.35 billion stablecoin market capitalization, according to DefiLlama data.
However, other countries around the world, particularly Europe, are beginning to take an interest in developing stablecoins pegged to fiat currencies.
On April 20, 2025, SG-Forge, the regulated digital asset arm of Société Générale, introduced EUR CoinVertible, a euro-denominated stablecoin on Ethereum, available to qualified institutional investors in which the bank participates.
In July, AllUnity, a joint venture backed by Flow Traders, Deutsche Bank’s DWS, and Galaxy, announced the release of EURAU. The regulated Euro-pegged stablecoin was launched to the public on July 31st.
Nine European banks have also announced plans to issue euro-pegged stablecoins, with the issuance scheduled for the second half of 2026.
According to Paxos Labs co-founder Bhau Kotecha, “USD-backed stablecoins have benefited from a head start over several years.” He said that to achieve comparable growth, euro and other fiat-denominated issuers will “need to develop their own implementation strategies focused on the right partnerships, use cases and liquidity channels.”
Ever since the United States passed the GENIUS Act stablecoin bill in July 2025, there seems to be increasing momentum in Europe to develop a homegrown euro-denominated stablecoin.
European Central Bank (ECB) President Christine Lagarde warned in September that the European Union needed to close regulatory loopholes around foreign stablecoins, warning that unregulated issuers could drain liquidity from the euro and the broader EU financial system.
“Europe should do its best to facilitate the creation of euro-denominated stablecoins by domestic issuers,” Pierre Gramegna, managing director of the European Stability Mechanism (ESM), said Thursday at a hearing on the eurozone economic outlook.
In Europe, a central bank digital currency, the digital euro, has been under discussion in the European Parliament since 2023, but its introduction is not expected until 2029.
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