🔴EXCLUSIVE @block_stories — @ODDO_BHF becomes the first European bank to integrate its stablecoin reserves into its fractional-reserve system👇 As @paddi_hansen pointed out last week 👉 while the MiCA regulation requires electronic money institutions such as Circle or Paxos to maintain a fully segregated reserve backed 1:1 by liquid assets, credit institutions (banks) are not subject to this requirement. According to our information, Oddo BHF is the first bank not to set up a segregated reserve for the EUROD, its euro stablecoin officially launched last Wednesday after receiving approval from the ACPR, France’s banking supervisor. 👉 Token contract on Polygon: 0xd37aF043481DA92eb7E218254952830C066cBCf5 In practice, this means that the stablecoin’s reserves appear on Oddo BHF’s balance sheet and can be integrated into the bank’s fractional-reserve system, which manages over €150 billion in assets. For now, however, the bank has adopted a cautious approach, maintaining a high level of liquidity to guarantee daily redemptions, with access to direct central bank funding until its stablecoin reaches a critical scale. 🎯Before this, no European bank issuing a stablecoin had chosen this option: → @BankingCircle, despite launching its euro stablecoin EURITE in August 2024 under a banking license, confirmed to us that it opted to maintain fully backed reserves, for now. → @SocieteGenerale, on the other hand, issues its euro (EURCV) and dollar (USDCV) stablecoins not through its banking license but via its blockchain subsidiary, SG-Forge, which is regulated as an electronic money institution. 🎯Potentially a game changer This milestone could be a game changer, as banks have so far been reluctant to issue stablecoins due to regulatory uncertainties and risk management concerns, which have led them to adopt full-reserve models where each token is backed 1:1 by liquid assets… …even though banks derive a significant share of their revenue from lending activities enabled by the fractional-reserve system. 👉As we revealed two weeks ago, this topic is currently one of the top priorities for Paris Europlace, France’s largest financial lobby, which brings together over 600 members, including major banks such as BNP Paribas, Société Générale, and Crédit Agricole. → These processes lead to reports that shape the lobby’s official position, enabling it to request clarifications from regulators and influence future amendments to European banking rules or MiCA. 🎯European Union vs. the rest of the world Today, only three jurisdictions allow credit institutions to issue stablecoins directly backed by their balance sheets: Japan, Singapore, and the European Union. For instance, even in the United States, banks are required to maintain segregated reserves, which is one of the main reasons why none of them have taken the leap so far. We’ll be following this topic in our 𝗜𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝗮𝗹 𝗕𝗿𝗶𝗲𝗳𝗶𝗻𝗴, a weekly newsletter covering the latest institutional developments in digital assets. To subscribe and join our 15,000+ readers, check the first comment below👇

Asking if Framework is a crypto fund is the same thing as asking if someone did internet in the 2000s or mobile in the 2010s Our ambitions cannot be contained to a single asset class or stage or thematic, the rise that many fudded is not a local phenomenon, we will use our balance sheets, crypto and/or stablecoins to brain every single vertical on earth and other planets to re-organize capital markets everywhere, which are downstream of everything

BlackRock CEO Larry Fink teeing up the tokenization of their $5 trillion iShares ETF complex at earnings today > When it happens, users will be able access equities, bonds, crypto and commodities all through their digital wallets, and all on-chain >Will be game changing ux for everyone when its all wired (or wrapped) across defi for full x-composability

Almost a decade ago I was the Harvard economist that said that bitcoin was more likely to be worth $100 than 100k. What did I miss? I was far too optimistic about the US coming to its senses about sensible cryptocurrency regulation; why would policymakers want to facilitate tax evasion and illegal activities? Second, I did not appreciate how Bitcoin would compete with fiat currencies to serve as the transactions medium of choice in the twenty-trillion dollar global underground economy. This demand puts a floor on its price, as I discuss at length in my new book Our Dollar, Your Problem. Third, I did not anticipate a situation where regulators, and especially the regulator in chief, would be able to brazenly hold hundreds of millions (if not billions) of dollars in cryptocurrencies seemingly without consequence given the blatant conflict of interest. cnbc.com/2018/03/05/bitcoin-…

🟦 This will make sense in a few hours. x.com/i/broadcasts/1YqGoopME…