175-Year-Old French Bank Issues First Stablecoin Under EU MiCA Rules

French banking group ODDO BHF has launched EUROD, a euro-backed stablecoin. The token acts as a compliant digital version of the euro under the EU’s new MiCA regime.

The 175-year-old lender’s move shows how traditional banks are expanding into regulated blockchain-based finance.

French Bank Enters the Digital Asset Market

ODDO BHF, which manages more than €150 billion in assets, said the token will list on Madrid-based exchange Bit2Me, backed by Telefónica, BBVA, and Unicaja. Bit2Me holds registration under Spain’s CNMV and was one of the first exchanges authorized under MiCA. The license lets the platform expand across the EU.

The bank teamed up with infrastructure provider Fireblocks to handle custody and settlements. It issues EUROD on the Polygon network to enable faster and cheaper transactions. The token entirely relies on euro reserves and undergoes external audits. Bit2Me CEO Leif Ferreira said the listing “bridges traditional banking with blockchain rails” as Europe embraces regulated digital assets.

MiCA Framework and Stability Risks

The Markets in Crypto-Assets Regulation (MiCA), implemented this year, requires issuers to maintain one-to-one reserves and guarantee redemption. It also enforces strong governance and transparency standards. EUROD’s rollout will test how well MiCA can harmonize digital-asset oversight across the EU.

European Central Bank (ECB) President Christine Lagarde recently warned that foreign stablecoins without “robust equivalence regimes” could trigger reserve runs in the eurozone. In a letter to the European Parliament, she urged lawmakers to limit issuance to EU-authorized firms. She cited the collapse of TerraUSD as proof of the risks from unregulated projects.

Source: CoinGecko

Euro-pegged stablecoins have doubled in market cap this year. Circle’s EURC leads the market, climbing to about $270 million, according to data from CoinGecko. EURC now dominates the sector, while bank-issued tokens such as SocGen’s EUR CoinVertible attract less demand under MiCA.

ECB adviser Jürgen Schaaf argued that Europe must move faster on innovation or risk “erosion of monetary sovereignty.” The European Systemic Risk Board (ESRB) warned that multi-issuer schemes—where EU and non-EU firms release the same stablecoin—could import systemic risk and need tighter oversight.

Despite these warnings, MiCA’s clarity is driving competition. Société Générale-FORGE launched its euro stablecoin EURCV, while Deutsche Börse partnered with Circle to add EURC and USDC to its trading systems. Nine European banks—including ING, CaixaBank, and Danske—formed a Dutch consortium to issue a MiCA-compliant euro stablecoin by 2026, with Citigroup later joining the coalition before its planned launch in the second half of that year.

Meanwhile, ten G7 lenders, including Citi and Deutsche Bank, explore multi-currency stablecoins to modernize settlement processes and boost global liquidity.

Outlook for EUROD and the Euro Stablecoin Market

Euro-backed stablecoins still represent a small share—below $574 million in total capitalization—compared with over $160 billion in dollar-pegged tokens. Regulators expect euro-denominated assets to strengthen financial sovereignty if managed transparently.

For ODDO BHF, EUROD marks a strategic move to attract institutional clients through compliance and trust. Its growth will hinge on adoption by payment providers and investors looking for a reliable euro alternative in the digital economy.