Introduction of EUROD Stablecoin
A new euro-pegged stablecoin, named EUROD, has been introduced by the French banking firm ODDO BHF, marking a pivotal moment in the bank’s exploration of digital assets. The token is slated to be available on the Madrid-based cryptocurrency exchange, Bit2Me. This stablecoin aims to emulate the euro’s stability through a 1:1 backing, catering to both retail and institutional investors while adhering to the European Union’s MiCA regulatory standards.
Market Context and Strategic Moves
With over €150 billion (approximately $173 billion) in managed assets, ODDO BHF is venturing into the realm of cryptocurrency to offer a secure and regulated digital asset alternative amidst prevalent market volatility. Bit2Me’s CEO, Leif Ferreira, underscored the importance of this listing, stating it aligns with the platform’s goal to provide reliable digital asset options in a regulated space.
This innovative move follows Bit2Me’s successful capital raise of €30 million (around $35 million), which was led by Tether, a leading issuer in the stablecoin market. The introduction of EUROD is part of broader trends among European financial institutions toward incorporating stablecoins, as evidenced by similar ventures earlier this month from Societe Generale, which launched dollar and euro-backed stablecoins through platforms like Morpho and Uniswap. Societe Generale aims to present their stablecoins as viable financial tools rather than replacements for traditional currency.
Collaborative Efforts in the Euro Stablecoin Space
In a related advancement, nine European banking giants, including UniCredit and ING Groep NV, are collaborating to create a euro-backed stablecoin initiative, to which Citigroup has recently pledged its support. This surge of interest in euro-supported tokens reflects a strategic effort to compete against the dominance of the U.S. dollar in the current stablecoin market.
Presently, Tether’s USDT leads the market with a 59.01% share, while euro-backed stablecoins represent a mere $573.9 million of the total $306 billion stablecoin market valuation, with Circle’s EURC being the most significant at $266 million.
Conclusion
The launch of EUROD represents ODDO BHF’s first significant foray into the cryptosphere, joining the ranks of other European financial entities looking to innovate and adapt in the evolving digital financial landscape.
