Banking Giant ODDO BHF Bets on Blockchain with EUROD Euro Stablecoin

French banking giant ODDO BHF has introduced EUROD, a euro-backed stablecoin that serves as a regulated digital version of the euro under the EU’s Markets in Crypto-Assets (MiCA) framework. The move underscores how traditional banks are entering the blockchain finance space as digital assets gain regulatory clarity in Europe.

ODDO BHF, a 175-year-old lender managing over €150 billion, partnered with Fireblocks for custody and settlements and issued EUROD on the Polygon network to enable fast, low-cost transactions. The stablecoin is fully backed by euro reserves and undergoes external audits to ensure transparency. It will debut on Bit2Me, a Madrid-based exchange backed by Telefónica, BBVA, and Unicaja, one of the first platforms licensed under MiCA and authorized by Spain’s CNMV. Bit2Me’s CEO Leif Ferreira described EUROD’s launch as a “bridge between traditional banking and blockchain rails.”

The MiCA framework, implemented this year, mandates stablecoin issuers maintain one-to-one reserves and guarantee redemption while enforcing strict governance standards. However, ECB President Christine Lagarde warned that unregulated foreign stablecoins could threaten eurozone stability, urging issuance limits to EU-authorized entities.

Despite such concerns, euro stablecoins are growing. Circle’s EURC leads the market with around $270 million in capitalization, while Société Générale’s EURCV and other bank-issued tokens compete under MiCA compliance. The European Systemic Risk Board also cautioned against multi-issuer stablecoins that may introduce systemic risks.

With total euro stablecoins still below $574 million, the segment remains small compared to dollar-backed tokens. Still, EUROD could strengthen Europe’s financial sovereignty by offering a secure, compliant alternative for institutions and investors seeking euro-denominated digital assets.

For ODDO BHF, EUROD is a strategic step to attract institutional clients through regulation, transparency, and trust, positioning the bank as a pioneer in Europe’s evolving regulated digital finance ecosystem.