Europe is making a strategic push to establish its presence in the stablecoin market, moving away from the pervasive dominance of US dollar-backed tokens. This significant shift is exemplified by the recent launch of a euro-pegged stablecoin by the franco-German banking group ODDO BHF, signaling a broader ambition within the continent to foster financial innovation under robust regulatory frameworks.
ODDO BHF Spearheads Euro Stablecoin Initiative
In a landmark move, ODDO BHF has introduced EUROD, a new stablecoin pegged to the euro, operating under the European Union's comprehensive Markets in Crypto Assets (MiCA) regulation. The bank itself will act as the issuer, ensuring regulatory compliance and stability. To support this venture, ODDO BHF has partnered with Flowdesk for liquidity provision and Fireblocks for tokenization infrastructure, with initial listing planned on the Spanish cryptocurrency exchange Bit2Me. This initiative stems from a clear strategic objective: to offer a viable European alternative to the prevalent dollar-denominated stablecoins, thereby strengthening the euro's role in the digital asset landscape.
Europe's Strategic Push to Decouple from Dollar Dominance
While dollar-backed stablecoins like Tether's USDT and Circle's USDC currently command over 83% of the global stablecoin market, Europe is rapidly developing its own ecosystem. ODDO BHF's EUROD joins other notable European endeavors, including Société Générale's regulated digital asset arm, SG-Forge, which launched EUR CoinVertible, and AllUnity's EURAU stablecoin. Furthermore, a consortium of nine European banks has also announced plans for a euro-linked stablecoin, slated for a 2026 launch. This collective effort is driven by a growing awareness of the strategic importance of domestic, euro-denominated stablecoins. European regulators and policymakers, including ECB President Christine Lagarde and ESM Managing Director Pierre Gramegna, have voiced strong support for developing national euro stablecoins, emphasizing the need to close regulatory gaps and prevent liquidity drain to unregulated foreign issuers. This ongoing momentum underscores Europe's determination to carve out its own space in the digital finance arena, distinct from the long-debated digital euro.
