Paris-based financial group Oddo is working on a stablecoin

According to reports, Oddo BHF SCA is developing a euro-denominated stablecoin. The financial group, headquartered in Paris, anticipates that the token will be released next year, although it is subject to regulatory approval. The initiative will bring the company into an increasingly crowded market.

Stablecoins’ low volatility has made them a popular choice among crypto traders who want to transmit funds between platforms or enter and exit positions.

They have also become more beneficial for firms that wish to effectuate faster and more cost-effective digital payments and for investors who wish to trade and settle traditional assets like bonds using blockchain technology.

The Oddo BHF SCA stablecoin – Details

Reports reveal that Oddo BHF has been collaborating with the crypto technology company Fireblocks to create the instrument.

The European Union has adopted the new crypto regulations. The stablecoin is anticipated to be structured under the EU regulations, which will present an opportunity for Oddo to thrive.

This project comes as an addition to Societe Generale SA’s crypto assets unit in France, Oddo’s native market. The market has already issued a euro-denominated stablecoin known as EUR convertible. The restructuring was also completed by the EU’s new regulations.

Oddo is considered to have the ability to handle the stablecoin as it had approximately 3,000 employees and over €140 billion ($147 billion) in client assets under management at the end of 2023.

Last year, it generated net banking income of €806 million (1.02 billion) and is majority-owned by the Oddo family.

According to reports, Oddo operates in three primary sectors: Private banking, asset management, and corporate and investment banking.

The rise of the stablecoin market

Stablecoins are now part of the crypto assets program’s markets, which is anticipated to encourage an increase in activity from banks and other financial institutions. They are intended to maintain a consistent value in relation to an asset such as the dollar or euro and are rapidly becoming more commonplace.

Source: DeFiLlama – Through Bloomberg

Stripe Inc. announced its intention to acquire Bridge, a startup, in October. Stripe, under the leadership of Chief Executive Officer Patrick Collison, will acquire Bridge for $1.1 billion.

In addition, Deutsche Bank AG’s DWS Group, Dutch market creator Flow Traders Ltd., and crypto fund manager Galaxy Digital Holdings Ltd. have established a new company, AllUnity. The company intends to issue a euro-denominated stablecoin.

Also, Robinhood Markets Inc. and Revolut Ltd., two of the most successful fintech startups, are reportedly considering introducing stablecoins.

However, reports suggest that promoting several stablecoins has been easy. Market entrants such as PayPal Holdings Inc. have encountered difficulty. According to Coingecko, only six tokens have achieved a market value of over $1 billion.

However, Tether’s USDT has not had that problem. Tether’s main instrument stands at $140 billion, having added roughly $20 billion since Donald Trump’s election to the White House in early November.

According to data from CoinGecko, Stablecoins’ market cap today stands at $207 Billion and has a 5.38% share of the total crypto market cap.

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