AUM exceeds 150 billion euros! Banking giant ODDO BHF launches euro stablecoin EUROD: TradFi accelerates get on board under the MiCA framework.

The French banking group ODDO BHF, with a history of 175 years, has officially launched its euro-backed stablecoin EUROD, which is a compliant digital euro introduced under the new MiCA (Markets in Crypto-Assets Regulation) framework in the EU. This move signifies that traditional banks are accelerating their expansion into the regulated Blockchain financial sector. The issuance of EUROD is on the Polygon network and is in partnership with infrastructure provider Fireblocks to handle custody and Settlement. As MiCA enhances regulatory clarity, competition in the euro stablecoin market in Europe intensifies, aiming to strengthen the financial sovereignty of the EU.

Traditional Banking Giants Enter the Arena: Compliance Token EUROD Listed on Bit2Me

The actions of ODDO BHF indicate that traditional financial institutions are actively seeking to leverage Blockchain technology and issue digital assets in a Compliance manner.

· European traditional banks issue stablecoins

ODDO BHF, managing assets over 150 billion euros, announced that its stablecoin EUROD will be listed on the Bit2Me exchange headquartered in Madrid. Bit2Me is a CNMV registered exchange in Spain and one of the first platforms to receive MiCA authorization.

· Technical and compliance details

The bank collaborates with infrastructure provider Fireblocks to handle custody and settlement, and issues EUROD on the Polygon network for faster and cheaper transactions.

EUROD fully relies on euro reserves and accepts external audits, aiming to achieve full compliance. Bit2Me CEO Leif Ferreira stated that this listing “bridges the gap between traditional banking and the blockchain track.”

Competition and Risks of the Stablecoin Market under the MiCA Framework

The MiCA regulations have brought clarity to the euro stablecoin market, while also triggering warnings from the European Central Bank regarding foreign stablecoins and systemic risks.

· MiCA regulatory requirements

The MiCA regulation implemented this year requires stablecoin issuers to maintain a one-to-one reserve and guarantee redemption, while enforcing strict governance and transparency standards. The launch of EUROD will test the effectiveness of MiCA in coordinating digital asset regulation across the European Union.

· European Central Bank's Risk Warning

European Central Bank (ECB) President Christine Lagarde recently warned that a lack of a “sound counterpart mechanism” for foreign stablecoins could trigger a reserve run in the eurozone. She urged lawmakers to limit the issuance of stablecoins to companies authorized by the EU, citing the collapse of TerraUSD as proof of the risks posed by unregulated projects.

· Competition in the euro stablecoin market intensifies

The market value of euro-pegged stablecoins has doubled this year, with Circle's EURC leading the market, reaching a market value of about 270 million dollars.

• Competition is intensifying under the clear framework of MiCA: Société Générale-FORGE has launched its euro stablecoin EURCV; Deutsche Börse has partnered with Circle to integrate its EURC and USDC into its trading system.
• A consortium of nine European banks, including ING, CaixaBank, and Danske, plans to launch a euro stablecoin compliant with MiCA standards by the end of 2026.

Market Outlook: The Growth of EUROD and Financial Sovereignty Goals

Although the market share of euro-backed stablecoins is still small, its potential in terms of compliance and financial sovereignty is enormous, with ODDO BHF targeting the trust of institutional clients.

· Market Share and Financial Sovereignty

The total market capitalization of euro-backed stablecoins is less than 574 million USD, which is still insignificant compared to the over 160 billion USD of dollar-pegged tokens.

Regulators expect that if management is transparent, assets denominated in euros will strengthen financial sovereignty.

· Strategic Positioning of EUROD

For ODDO BHF, EUROD represents a strategic initiative aimed at attracting institutional clients through compliance and trust. Its growth will depend on the adoption of reliable euro alternatives in the digital economy by payment providers and investors.

· G7 banks explore multi-currency stablecoin

Ten G7 banks, including Citi and Deutsche Bank, are exploring multi-currency stablecoins to modernize settlement processes and enhance global liquidity.

Conclusion

ODDO BHF has launched EUROD, which is a strong proof of traditional finance embracing the MiCA regulatory era of digital assets. Under the clarity provided by the MiCA framework, the European euro stablecoin market is experiencing a wave of intense competition and innovation. While the European Central Bank remains vigilant about the risks of foreign stablecoins, compliant banks issuing stablecoins are undoubtedly a key step in enhancing the euro's position in the digital economy and consolidating the EU's financial sovereignty. The long-term success of EUROD will depend on its practical applications in the institutional and payment sectors, as well as the smooth implementation of the MiCA framework across Europe.

This article is for news information only and does not constitute any investment advice. The crypto market is experiencing significant fluctuations, and investors should make cautious decisions.