Crédit Agricole has become the latest major European bank to enter the stablecoin market, unveiling a euro-backed digital token as traditional lenders increasingly embrace blockchain technology and tokenized finance.
The French banking giant, the country’s second-largest bank by assets, introduced the EURO eXchange Token (EURXT) through its asset servicing subsidiary, Caceis Bank.
The stablecoin is backed 100 percent by euros, on a 1:1 ratio, and has been structured in a manner that meets the European Union’s Markets in Crypto-assets (MiCA) requirements.
The announcement places Crédit Agricole amongst other financial institutions that have launched euro stablecoins, which include Société Générale and Circle, in addition to the consortium of 37 European banks that have partnered under the Qivalis program to create their own digital euro token.
How is the stablecoin different?
EURXT is being developed as infrastructure for institutional finance, not as a stablecoin for retail crypto traders.
The token had already been used to settle a subscription into a tokenised money market fund run by Amundi, one of Europe’s largest asset managers, the bank said.
The deal is an example of how stablecoins are increasingly being used behind the scenes to move money more efficiently around blockchain-based financial markets.
EURXT circulation
At launch, there are about 20 million EURXT tokens in circulation on Ethereum, each of which is backed by euro reserves held with Caceis Bank.
That’s a lot less than some of the current competition. Circle’s euro stablecoin, EURC, has about 378 million tokens in circulation while Société Générale’s EURCV has some 124 million tokens in circulation.
But the market is expanding rapidly. Euro-pegged stablecoins have gained traction since MiCA took effect a year ago as clearer regulation has encouraged banks and financial institutions to roll out blockchain-based payment products. Research from payments company DECTA shows that the market capitalisation of euro stablecoins has more than doubled in one year.
That growth still leaves the sector small compared with the market for dollar-denominated stablecoins.
Tether’s USDT and Circle’s USDC tokens continue to dominate, with euro stablecoins accounting for only around 0.5 percent of the global stablecoin market.
But many in the industry believe that could gradually change as European institutions become more at ease with using blockchain technology.
The latest move by Crédit Agricole reflects that shift.
Unlike speculative crypto trading, the bank is focusing on practical applications for digital money, such as more efficient settlement of tokenised funds, securities and other financial products.
And Amundi’s is a good example of that direction.” The asset manager, which manages some €2.4 trillion ($2.73 trillion) of assets, launched a tokenised share class for one of its flagship euro cash funds last year. With a regulated stablecoin like EURXT, those transactions can be done entirely on blockchain infrastructure, while still being within Europe’s regulatory framework.
It also allows the bank to build on its presence in tokenised finance and digital assets as part of Crédit Agricole’s broader ACT 2028 strategy.
The launch is less about entering the crypto market and more about preparing for a world where traditional finance increasingly runs on blockchain, the bank said.
Europe’s financial sector is moving slowly beyond experimentation as more banks launch regulated stablecoins and tokenised financial products. With regulatory clarity provided by MiCA, competition between traditional institutions to build the infrastructure for digital finance is beginning to accelerate.
