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Franco-German banking group ODDO BHF launched a stablecoin pegged to the euro under the European Union’s&nbsp;Markets in Crypto-Assets (MiCA)&nbsp;regulation.
According to an <a href="https://www.oddo-bhf.com/2025/10/15/oddo-bhf-launches-its-first-euro-backed-stablecoin/#" rel="noopener noreferrer nofollow" target="_blank">announcement</a> on Wednesday, the bank will issue the EUROD stablecoin, while market-making platform Flowdesk will provide liquidity and Fireblocks will supply the tokenization infrastructure.
Guy de Leusse, deputy chief operating officer at ODDO BHF, said the group “felt it was essential to offer a European solution denominated in euros to provide an alternative to stablecoins denominated in US dollars.”
Stablecoins are digital tokens pegged to traditional currencies like the euro. The new token will be initially listed on the Spanish-based crypto exchange Bit2Me.
ODDO BHF is a privately owned European financial group formed in 2016 through the merger of France’s ODDO bank, founded in 1849, and Germany’s BHF-BANK, founded in 1854. According to the <a href="https://www.oddo-bhf.com/about-us/" rel="noopener noreferrer nofollow" target="_blank">bank</a>, it operates across France, Tunisia, Germany and Switzerland.
Related: <a href="https://cointelegraph.com/news/eu-crypto-oversight-esma-fragmented-supervision" rel="noopener noreferrer nofollow" target="_self">EU eyes crypto oversight under ESMA to end fragmented supervision</a>&nbsp;
<h2 id="european-stablecoins-rising">European stablecoins rising</h2>
Until now, the stablecoin market has been dominated by dollar–pegged tokens. Tether’s USDt (<a href="/tether-price-index" rel="noopener noreferrer">USDT</a>) and Circle’s USDC (<a href="/usdc-price-index" rel="noopener noreferrer">USDC</a>) remain the two largest globally, accounting for more than 83% of the total $306.35 billion stablecoin market capitalization, according to <a href="https://defillama.com/stablecoins" rel="noopener noreferrer nofollow" target="_blank">data</a> from DefiLlama.
<figure>
 <img alt="Franco-German bank ODDO BHF launches euro-backed stablecoin" src="https://s3.cointelegraph.com/uploads/2025-10/0199e8d0-48e5-72d2-a877-18ac073878e2" title="">
 <figcaption style="text-align: center;">
 Stablecoin market cap. Source: <a href="https://defillama.com/stablecoins" rel="noopener noreferrer nofollow" target="_blank">DefiLlama</a> 
 </figcaption>
</figure>
But the rest of the world, particularly Europe, is beginning to take more of an interest in developing stablecoins pegged to their fiat currencies.
On April 20, 2025, Société Générale’s regulated digital asset arm, SG-Forge, introduced EUR CoinVertible, a <a href="https://cointelegraph.com/news/societe-generale-launches-euro-pegged-stablecoin-on-ethereum" rel="noopener noreferrer nofollow">euro-denominated stablecoin on Ethereum</a> available to qualified institutional investors onboarded by the bank.&nbsp;
In July, AllUnity, a joint venture backed by Flow Traders, Deutsche Bank’s DWS, and Galaxy, announced the release of EURAU. The <a href="https://cointelegraph.com/news/eurau-stablecoin-allunity-launch-key-things-to-know" rel="noopener noreferrer nofollow" target="_self">regulated euro-pegged stablecoin</a> became publicly available on July 31.
<a href="https://cointelegraph.com/news/unicredit-ing-nine-banks-euro-stablecoin-mica" rel="noopener noreferrer nofollow">Nine European banks also announced plans</a> to launch a euro-pegged stablecoin, which is expected to launch in the second half of 2026.
According to Bhau Kotecha, co-founder of Paxos Labs, “USD-backed stablecoins have benefited from a multi-year head start.” To achieve comparable growth, he said, euro and other fiat-backed issuers “will need to develop unique adoption strategies focusing on the right partnerships, use cases, and liquidity pathways.”
Since the United States passed the&nbsp;<a href="https://cointelegraph.com/news/stablecoin-genius-act-donald-trump-signing" rel="noopener noreferrer nofollow" target="_self">GENIUS Act&nbsp;stablecoin bill</a> in&nbsp;July 2025, momentum appears to be building in Europe to develop homegrown, euro-denominated stablecoins.
In September, European Central Bank (ECB) president Christine Lagarde cautioned that the European Union needs to close <a href="https://cointelegraph.com/news/ecb-president-risks-non-eu-stablecoins" rel="noopener noreferrer nofollow" target="_self">regulatory loopholes around foreign stablecoins</a>, warning that unregulated issuers could draw liquidity away from the euro and the broader EU financial system.
Speaking on Thursday during a hearing on the <a href="https://cointelegraph.com/news/euro-stability-mechanism-push-stablecoin" rel="noopener noreferrer nofollow">eurozone’s economic outlook</a>, Pierre Gramegna, managing director of the European Stability Mechanism (ESM), said “Europe should do its best to facilitate the generation of euro-denominated stablecoins by domestic issuers.”
Europe has also been <a href="https://cointelegraph.com/news/digital-euro-ecb-lawmakers-privacy-risks" rel="noopener noreferrer nofollow" target="_self">debating a digital euro</a>, a central bank digital currency, in the European Parliament since 2023, but its <a href="https://cointelegraph.com/news/digital-euro-mid-2029-fair-assessment-ecb-cipollone" rel="noopener noreferrer nofollow" target="_self">launch is not expected before 2029</a>.
Magazine: <a href="https://cointelegraph.com/magazine/europe-chat-control-germany-oppose-scan-messages/" rel="noopener noreferrer nofollow" target="_self">EU’s privacy-killing Chat Control bill delayed — but fight isn’t over</a>

Franco-German bank ODDO BHF launches euro-backed stablecoin

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