French financial behemoth ODDO BHF has entered the crypto space by rolling out a euro-backed stablecoin dubbed EUROD.
ODDO BHF, a French payment giant that holds more than $173 billion in Asset Under Management (AUM), has launched a euro-backed stablecoin dubbed EUROD.
This launch marks the financial giant’s first entry into the cryptocurrency market.
ODDO BHF’s Stablecoin Complies With MiCA Regulation
On October 15, the 175-year-old French banking giant hinted that it is set to roll out a euro-backed stablecoin. Dubbed EUROD, this token will be listed on Bit2Me, a Madrid-based crypto platform.
This listing is a major milestone for the financial platform, considering that Bit2Me prides itself on being one of the largest exchanges in the region.
It is backed by telecom giant Telefonica and other major institutions such as banking giants Unicaja and BBVA.
By design, EUROD will cater to both retail and institutional clients and is compliant with the regulatory requirements in the region. This includes the European Union’s Markets in Crypto-Assets (MiCA) regulation.
This new development reflects the increasing interest in stablecoins amid improved regulation. Recently, Societe Generale-FORGE (SG-FORGE) and the European crypto platform Bitpanda deepened their alliance to bring regulated stablecoins into decentralized finance (DeFi).
This upgraded alliance allows Bitpanda’s retail clients to use SG-FORGE’s EUR CoinVertible (EURCV) and USD CoinVertible (USDCV) stablecoins in on-chain lending and borrowing protocols.
Crypto Exchanges Reaches For MiCA License
Meanwhile, traditional finance (TradFi) players have become more attracted to crypto investments over the last few months. This pivot could be attributed to the availability of robust and comprehensive regulation in the ecosystem.
In the EU, MiCA has become the guiding framework for these institutional investors, boosting their trust and confidence in digital assets.
To keep up with the growing institutional demand, more firms are pushing to secure regulatory approval from EU states.
Towards the end of September, Gate Technology Ltd, a subsidiary of Gate Group, secured the MiCA license from the Malta Financial Services Authority (MFSA).
At the time, the founder of Gate Group, Dr. Lin Han, noted that complying with regulatory approval is key to sustained operations across Europe.
In August, Gemini exchange, which is run by the Winklevoss twins, received the MiCA license from the MFSA. This license authorizes the crypto exchange to provide its services to all the countries within the European Economic Area (EEA).
Other digital asset service providers like Coinbase have equally obtained their MiCA license from the appropriate authorities.
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