(Bloomberg) -- Oddo BHF SCA is working on a euro-denominated stablecoin, people familiar with the matter said, an initiative that would bring it into an increasingly crowded market.

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The Paris-based financial group has been working with crypto technology firm Fireblocks on developing the instrument, the people said, asking not to be named as the plans are private. Oddo expects to launch the token next year, pending regulatory approval, they said.

Stablecoins — digital tokens designed to maintain a constant value against an asset like the dollar or euro — are quickly moving mainstream along with other cryptocurrrencies like Bitcoin. Yet even market entrants like PayPal Holdings Inc. have struggled to get their stablecoins widely used, with only six tokens reaching a market value of over $1 billion, according to CoinGecko.

Spokespeople for Oddo and Fireblocks declined to comment.

The advent of the European Union’s full adoption of new cryptocurrency regulations may provide an opening for Oddo and other newcomers. The Markets in Crypto Assets package includes rules for stablecoins which are expected to spur more activity from banks and other large financial firms in the space.

At the same time, several exchanges have delisted Tether Holdings Ltd.’s namesake stablecoin, the dominant one globally, from their EU platforms because it lacks the license required for trading there.

Stablecoins’ low volatility has made them popular with crypto traders looking to move in and out of positions, or transfer funds between platforms. They’ve also become more useful for firms looking to move money across borders, facilitate faster and cheaper digital payments and for investors looking to trade and settle traditional assets such as bonds using blockchain technology.

Rising Stablecoin Competition

With the asset class gaining in popularity, financial firms of all stripes are piling in. Robinhood Markets Inc. and Revolut Ltd., two of the most successful fintech companies, are among those considering launching stablecoins, Bloomberg News has reported.

Another signal of stablecoins’ growing appeal came in October, when Stripe Inc. confirmed plans to buy startup Bridge. Stripe, led by Chief Executive Officer Patrick Collison, will pay $1.1 billion for Bridge, Bloomberg News reported at the time.