Franco-German Bank ODDO BHF Launches Euro-Backed Stablecoin

Franco-German bank ODDO BHF has launched a euro-backed stablecoin called EUROD, entering the digital currency market. The move follows the European Union’s Markets in Crypto-Assets regulation and shows growing interest in Europe’s own stablecoins. According to ODDO BHF, the project seeks to provide a European alternative to US dollar–pegged stablecoins, which currently lead the market.

How Are Euro-Backed Stablecoins Evolving?

ODDO BHF is a privately owned financial group formed in 2016 when France’s ODDO Bank merged with Germany’s BHF-BANK. The bank operates in France, Germany, Tunisia, and Switzerland. Guy de Leusse, deputy chief operating officer, said EUROD is meant to boost Europe’s presence in the stablecoin market, which has been dominated by US dollar-pegged tokens like Tether’s USDT and Circle’s USDC.

Euro-backed stablecoins are gaining attention. Société Générale’s SG-Forge launched EUR CoinVertible earlier this year for institutional investors, and AllUnity released EURAU in July for the public. Nine European banks also plan to issue euro stablecoins by 2026.

The European Central Bank has stressed the need to regulate foreign stablecoins to prevent eurozone liquidity from leaving. ECB president Christine Lagarde warned that unregulated stablecoins could affect financial stability and euro adoption. In this context, ODDO BHF’s EUROD launch comes at the right time.

Factors Impacting Euro Stablecoins

US dollar-pegged stablecoins have a significant multi-year advantage, accounting for over 83% of the global stablecoin market, according to DefiLlama. Euro-based alternatives face challenges to gain similar acceptance. Bhau Kotecha, co-founder of Paxos Labs, says adoption will depend on partnerships, liquidity, and clear use cases.

Regulatory clarity under MiCA offers a stable foundation for growth. The US passed the GENIUS Act in July 2025, adding further pressure on Europe to create its own solutions. EUROD could join a new wave of euro-denominated stablecoins for both retail and institutional investors, giving Europe more control in digital finance.

Public trust is another important factor. European investors are often cautious with new financial products, especially digital assets. Offering EUROD through banks and regulated exchanges could build confidence and encourage adoption.

Strategic Partnerships and Infrastructure

ODDO BHF is entering this market with experienced partners. Flowdesk will provide liquidity, and Fireblocks will handle tokenization, making EUROD secure and liquid from day one.

The initial launch on a Spanish crypto exchange, Bit2Me, gives EUROD early exposure in Europe. Later, the bank may list it on other exchanges, creating more trading options. The setup also allows EUROD to connect with DeFi platforms and cross-border payment systems.

The choice of partners shows the bank’s focus on reliability and compliance. Unlike many US dollar–pegged stablecoins, EUROD is launched with clear legal and operational standards, which may attract cautious institutional investors.

An Outlook for Euro-Pegged Tokens

The launch of EUROD shows a small but important change in Europe’s approach to digital finance. While a central bank digital euro is not expected before 2029, private projects like ODDO BHF’s stablecoin offer a quicker solution for euro-based digital payments.

The success of EUROD could inspire more euro-backed stablecoins, helping to diversify the market and reduce reliance on US dollar–linked options.