ODDO BHF Launches EUROD – A Regulated Euro-Backed Stablecoin

The European financial group ODDO BHF has unveiled its first euro-backed stablecoin, EUROD, marking a significant stride into the digital asset sphere.

Based in Paris and with roots stretching back 175 years, ODDO BHF is positioning EUROD as a bridge between traditional banking and blockchain payments. The firm says the stablecoin is designed to combine the “solidity of the traditional banking system with the advantages of blockchain technology” by offering a secure, transparent and fast payment alternative denominated in euros.

Some of the key features of the move:

• EUROD is fully backed by euro-reserves and will be redeemable on a 1:1 basis in euros under specified conditions.

• The stablecoin is compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCA), positioning it among the early institutional issuers under the EU framework.

• ODDO BHF has selected Bit2Me, a Spain-based crypto-asset exchange, as the initial listing platform and will work with partners such as Fireblocks (for custody/infrastructure) and Flowdesk (for liquidity).

• The initial target audience includes both institutional and retail users, with ODDO BHF emphasising the need for a “European solution denominated in euros” as an alternative to the large US-dollar-backed stablecoin market.

  
  

The launch of EUROD comes at a moment when stablecoins denominated in euros remain a relatively small slice of the global market, which is dominated by US-dollar-pegged tokens. For Europe, the initiative highlights a push toward greater financial sovereignty, digital-asset infrastructure and regulated bridges between traditional finance (TradFi) and blockchain rails. It may also be seen as part of the response to the growing regulatory and competitive pressure around global stablecoins and digital currencies.

While the move is promising, there are caveats. ODDO BHF notes that the stablecoin is not covered by deposit guarantee schemes, meaning redemption is subject to the issuer’s terms and operational/technological risks. Also, the success of EUROD will depend on adoption — listing support, liquidity, use-cases (payments, trading, settlements) and competition from both other euro stablecoins and US-dollar-pegged incumbents.

For ODDO BHF, EUROD signals the bank’s intention to build a broader suite of digital financial offerings in euros. For the market, it could help accelerate euro-denominated on-chain activity, deepen liquidity in euro tokens, and challenge the dominance of US-dollar-stablecoins in Europe’s crypto ecosystem. The extent to which the token gains traction with large institutions, payment processors and blockchain native firms will be a key metric to watch.

Source: ODDO BHF press release