Europe’s Third-Largest Bank Crédit Agricole Debuts Euro-Backed Stablecoin

Crédit Agricole launches EURXT, a MiCA-compliant euro-backed stablecoin on Ethereum, expanding tokenized finance for institutional and corporate clients.

Crédit Agricole, Europe’s third-largest bank by assets, has launched its euro-backed stablecoin called EURXT. The stablecoin is launched by the bank’s asset servicing arm, CACEIS, on the Ethereum blockchain. Initially, EURXT is available only to institutional investors and corporate clients as the bank expands its digital finance services.

The launch is also a significant milestone in the bank’s tokenization journey. Furthermore, EURXT has already been issued for the first time. The stablecoin has been used to pay for a subscription to the tokenized Amundi Money Market Fund.

Crédit Agricole Launches MiCA-Compliant EURXT Stablecoin

EURXT is an ERC-20-compliant electronic money token on Ethereum. Moreover, the stablecoin is backed by euros at a 1:1 ratio. Crédit Agricole says that CACEIS Bank has cash reserves dedicated to each token in circulation.

The bank stated that EURXT meets all the requirements of the European Union’s Markets in Crypto-Assets (MiCA) regulation. Therefore, the stablecoin offers institutional users a regulated and secure digital payment tool for blockchain-based financial transactions.

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Moreover, EURXT started with approximately 20.02 million tokens in circulation. The company stated that cash equivalents are kept directly on CACEIS Bank’s balance sheet. Therefore, users get complete support for all the tokens that they issue.

The first application of EURXT was to the Amundi Money Market Fund. This was the first settlement of a tokenized Luxembourg-based UCITS money market fund using a euro stablecoin in Europe, the bank said.

For Crédit Agricole, tokenization has the potential to enhance financial markets. According to the bank, blockchain technology has the potential to shorten settlement times, enhance operational efficiency, and foster innovation in the asset management sector.

Stablecoin Competition Continues to Grow

The launch is part of the bank’s long-term strategy, said Olivier Gavalda, the chief executive officer of Crédit Agricole. He said EURXT provides clients with a stable and secure payment tool that complies with the most recent European regulations.

The stablecoin will also give clients the chance to try out new investment opportunities and get ready for the next generation of financial services, he added. As a result, the bank anticipates that the demand for regulated digital settlement solutions will continue to increase.

Meanwhile, traditional European banks are still expanding into blockchain-based finance. EURXT is the fourth major European banking institution to launch a stablecoin. Société Générale via SG-FORGE, Banking Circle and ODDO BHF are among the banks that already have stablecoins.

But not all European institutions are convinced about the stability of stablecoins. Earlier this week, the European Central Bank (ECB) issued a warning about the potential dangers of relaxing regulations on euro-denominated stablecoins. The ECB also stated that stablecoins might complicate its work in monetary policy and financial stability.

However, many financial institutions are still investing in tokenization and blockchain technology. Banks see the potential of regulated digital assets to enhance payments, settlement, and investment services.

With the launch of EURXT, blockchain technology is increasingly becoming part of the traditional finance sector. The emergence of regulated stablecoins from more banks will likely lead to an increase in tokenized financial products throughout Europe.

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