Franco-German banking group ODDO BHF has launched a stablecoin pegged to the euro under the European Union’s Markets in Crypto-Assets (MiCA) regulation.
According to an announcement made on Wednesday, the bank will act as the issuer of the EUROD stablecoin. Market-making platform Flowdesk will provide liquidity, while Fireblocks supplies the tokenization infrastructure.
Guy de Leusse, the Deputy Chief Operating Officer at ODDO BHF, stated that the institution “felt it was essential to offer a European solution denominated in euros to provide an alternative to stablecoins denominated in US dollars.”
Stablecoins are cryptocurrencies designed to maintain a stable value, often pegged to traditional currencies. The new token will be initially available on the Spanish crypto exchange Bit2Me.
ODDO BHF is a privately held European financial company formed in 2016 through the merger of France’s ODDO bank, established in 1849, and Germany’s BHF-BANK, founded in 1854. The bank operates across France, Tunisia, Germany, and Switzerland.
Growing Interest in European Stablecoins
Historically, the stablecoin sector has been led by dollar-pegged tokens. Tether’s USDT and Circle’s USDC dominate the market, comprising over 83% of the $306.35 billion stablecoin market capitalization, according to DefiLlama.
However, Europe is gradually making strides to establish stablecoins anchored to their own currencies. For instance, on April 20, 2025, Société Générale’s digital asset branch, SG-Forge, launched EUR CoinVertible, an euro-pegged stablecoin for qualified institutional investors.
Additionally, in July, AllUnity, with backing from Flow Traders and Deutsche Bank’s DWS, launched EURAU, a regulated euro-pegged stablecoin made publicly accessible on July 31.
Furthermore, nine European banks have announced intentions to introduce a euro-pegged stablecoin expected in the latter half of 2026.
Bhau Kotecha, co-founder of Paxos Labs, noted that “USD-backed stablecoins have benefited from a multi-year head start.” He emphasized that to replicate similar growth, issuers backing euros and other fiat currencies must formulate unique adoption strategies concentrating on the right partnerships and liquidity channels.
Following the passage of the GENIUS Act stablecoin bill in July 2025, there is increasing momentum in Europe to nurture locally developed euro-denominated stablecoins.
In September, Christine Lagarde, President of the European Central Bank, urged the European Union to address regulatory gaps concerning foreign stablecoins, warning that unregulated entities might siphon liquidity from the euro and affect the broader EU financial ecosystem.
During a briefing on the eurozone’s economic forecast, Pierre Gramegna from the European Stability Mechanism asserted that “Europe should do its best to facilitate the generation of euro-denominated stablecoins by domestic issuers.”
Additionally, discussions have been ongoing since 2023 within the European Parliament regarding the potential establishment of a digital euro, a central bank digital currency, but its rollout is not anticipated before 2029.
