French financial services giant Societe Generale (OTC:SCGLY) has launched a new stablecoin called Euro CoinVertible, via its crypto-focused arm, Societe Generale-Forge (SG Forge). The stablecoin is pegged to the Euro and will be traded on the Ethereum public blockchain under the ticker symbol EURCV. According to a press release from SG Forge, the stablecoin has been developed in compliance with the French legal framework for digital assets and can adapt to upcoming European digital assets regulations such as MiCAR and Pilot Regime. The stablecoin will be available to SG Forge’s institutional clients as a settlement asset for their on-chain transactions. The company has positioned EURCV as an innovative solution for corporate treasury, cash management, and cash pooling activities. It can also be used for on-chain liquidity funding and refinancing solutions.
To ensure the stablecoin’s security, EUR CoinVertible will have stringent and predefined collateral eligibility criteria. SG Forge has also established a secure legal structure that will ensure the segregation of collateral assets held to back the stablecoin’s value. After mandatory KYC and AML formalities, EURCV will only be available to SG Forge’s accredited investors. In a statement, SG Forge’s CEO Jean-Marc Stenger said, “This issuance is a major step in Societe Generale-FORGE’s roadmap to deliver innovative solutions to its clients, either real-money institutions and corporates or entities of the crypto industry, and to facilitate the emergence of new market infrastructures based on blockchain technology.”
SG Forge plans to work with digital asset exchanges in the coming months to have its EURVC stablecoin listed. This will help its institutional investors gain exposure to the new product. The stablecoin’s smart contract has already been audited by London-based accounting giant PricewaterhouseCoopers (PwC).
The launch of the Euro CoinVertible stablecoin marks a significant milestone in Societe Generale’s efforts to expand its blockchain and crypto-related offerings. The French bank has been exploring blockchain technology for several years and has launched several initiatives in the space. In 2018, Societe Generale issued a €100m bond as a security token on the Ethereum blockchain. The bank has also invested in blockchain-based projects such as Komgo, a trade finance platform, and we.trade, a blockchain-based trade finance platform.
The launch of SG Forge’s stablecoin comes at a time when the stablecoin market is growing rapidly. Stablecoins are digital assets that are pegged to a stable asset such as fiat currency, gold, or other commodities. They are designed to minimize price volatility and provide a stable store of value. Stablecoins have gained popularity in recent years as they offer a way to transact in cryptocurrencies without the price risk associated with traditional cryptocurrencies such as Bitcoin.
In conclusion, the launch of the Euro CoinVertible stablecoin is a significant development for Societe Generale-Forge and the stablecoin market as a whole. The stablecoin’s compliance with French digital asset regulations and its potential to adapt to upcoming European digital asset regulations make it an attractive solution for institutional investors. The launch of the stablecoin also highlights Societe Generale’s continued efforts to explore blockchain technology and expand its crypto-related offerings.