Crédit Agricole Launches EURXT Stablecoin, Bringing Europe’s Banking Giant Onchain

Key Takeaways:

• Crédit Agricole has announced the launch of EURXT, a MiCa compliant euro stablecoin on the Ethereum network.
• EURXT powered the first subscription into a tokenized Amundi money market fund.
• The stablecoin aims to appeal to institutional investors, taking onchain settlement in Europe.

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Stablecoins make their entry into the regulated stablecoin space in one of Europe’s biggest banking groups. Crédit Agricole has launched EURXT (EURO eXchange Token), a stablecoin pegged to the euro that will facilitate institutional payments and tokenized finance.

The token is now available to institutions and corporate clients thanks to asset servicing arm CACEIS of Crédit Agricole, which announced the launches simultaneously.

EURXT can be activated on the Ethereum blockchain as an ERC-20 token and is backed to the Euro at a 1 to 1 ratio; EURXT is an electronic money token (EMT) under the Markets in Crypto-Assets (MiCA) regulations.

The stablecoin is not aimed at retail cryptocurrency consumers, but instead will be used as a reliable settlement asset for tokenized financial merchandise. The release aligns with the bank’s ACT 2028 strategy to build out the digital asset and tokenization services across the enterprise, the bank said.

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Alongside the launch, Crédit Agricole completed the first subscription into a tokenized Amundi Money Market Fund using EURXT.

It’s the first euro-stabilized money-market fund subscription by a European investor ever to be settled with a euro stablecoin, the transaction is described. Transferring settlement to the blockchain can shorten the time for transactions, enhance efficiency in the chain, and enable the attrition of tokenised financial assets between institutions to an ecommerce level.

In a market where regulated euro stablecoins are gaining in significance due to the financial sector’s turn to the blockchain, EURXT comes into play.

Each EURXT is completely backed by separate cash reserves on the CACEIS Bank’s balance sheet. The reserve framework will provide a stable digital payment instrument to institutional clients, while meeting the changing crypto regulations in Europe.

Debit Agricole chief executive Olivier Gavalda explained that the stablecoin will enable clients to step into new settlement norms slowly and seamlessly without compromising security or compliance. A reliable foundation for tokenized investments and next generation financial services lies in EURXT, he added.

The launch marks the next step in a seemingly inevitable shift by traditional finance from experimenting with blockchain towards implementing it.

Rather than pursuing trading on speculation, institutions are turning to the use of stablecoins for their tokenized funds, digital securities, and onchain settlement function. Crédit Agricole is currently working on becoming one of the many financial companies, with EURXT already having finished its first institutional blockchain deal, to develop regulated blockchain products for professional investors.

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