175-Year-Old French Bank Issues First Stablecoin Under EU MiCA Rules

Group 1: Core Insights - ODDO BHF has launched EUROD, a euro-backed stablecoin, marking a significant step for traditional banks into regulated blockchain finance [1][2] - The token will be listed on Bit2Me, a Madrid-based exchange, which is authorized under the EU's MiCA regulation, allowing it to operate across the EU [2][3] - EUROD is issued on the Polygon network, ensuring faster and cheaper transactions, and is fully backed by euro reserves with external audits [3] Group 2: Regulatory Framework - The MiCA regulation requires stablecoin issuers to maintain one-to-one reserves and guarantees for redemption, promoting governance and transparency [4] - The rollout of EUROD will serve as a test for the effectiveness of MiCA in harmonizing digital asset oversight across the EU [4] Group 3: Market Context - Euro-pegged stablecoins have seen a doubling in market cap this year, with Circle's EURC leading at approximately $270 million [6] - Despite warnings from ECB officials about the risks of foreign stablecoins, the clarity provided by MiCA is fostering competition among European banks to issue compliant stablecoins [7][8]