What to know:
- Crédit Agricole launched EURXT through CACEIS Bank under the EU’s MiCA rules in Europe.
- EURXT first settled a subscription into a tokenized Amundi money market fund in France.
- Euro stablecoins still hold only 0.5% market share despite stronger MiCA-driven growth.
Crédit Agricole launched a euro-pegged token through CACEIS Bank as regulated stablecoin competition expands in Europe. The Crédit Agricole EURXT stablecoin follows MiCA rules. It has already supported settlement for a tokenized Amundi money market fund subscription in France’s market.
According to the report, the token is called EURO eXchange Token, or EURXT. It is pegged 1:1 to the euro and issued by CACEIS Bank. The unit serves as Crédit Agricole’s asset servicing arm.
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Crédit Agricole EURXT Stablecoin Supports Fund Settlement
The token’s launch adds to the expanding euro stablecoin marketplace that already includes the efforts of Société Générale and Circle. Additionally, Qivalis, a consortium of 37 European banks, is planning a competing token to be launched this year.
Crédit Agricole EURXT stablecoin is launched amidst the testing of blockchain settlement of traditional finance transactions.
The token’s first known use case was a subscription into a tokenized Amundi money market fund. It demonstrated the potential of bank tokens for regulation-compliant fund management.
According to the project’s white paper, the issuance of EURXT is uncapped. The amount of tokens will depend on market demand. The token’s supply might increase via the project’s smart contracts.
“As of the date of the white paper, there is no limit on the issuance of EURXT,” the white paper reads.
The project’s data revealed 20.02 million EURXT tokens in circulation at the time of launch. The same data revealed 20.02 million euros held by CACEIS Bank in EURXT reserves. These reserves are supposed to back the euro value of the token.
Euro Stablecoin Market Grows Under MiCA Rules
Crédit Agricole’s EURXT stablecoin was launched after the MiCA regulations reshaped the token issuance practices in Europe. DECTA reports that the euro stablecoin market doubled in size over the last 12 months.
However, the size of euro-pegged tokens is still relatively insignificant compared to dollar-pegged assets.
According to the report, euro stablecoins currently make up just 0.5% of the total stablecoin market. Dollar-based stablecoins continue to dominate the sector via USDT and USDC. That difference creates an opportunity for European banks to create regulated euro payment solutions.
Crédit Agricole EURXT stablecoin follows a trend of tokenization efforts by other banks. Last September, HSBC and BNP Paribas became members of the Canton Foundation. The organization focuses on tokenizing institutional real-world assets.
What EURXT Means for Europe’s Stablecoin Market
Meanwhile, other European companies are also scaling their stablecoin offerings. AllUnity has been working on its MiCA-compliant stablecoin platform. Quantoz Payments continues to release its euro-denominated token products.
The Crédit Agricole EURXT stablecoin provides yet another bank-backed euro settlement solution. It may be used for tokenized funds, payments, and institutional blockchain transactions. But the success of the project will highly depend on investor interest and demand from financial platforms.
In addition, the launch of the Crédit Agricole EURXT stablecoin is related to the global growth of the stablecoin industry. In the United States, more than 140 organizations joined the Open USD project. Visa, Mastercard, Coinbase, and Ripple are part of the project.
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