Societe Generale, one of France’s largest banking and financial services firms, has announced the launch of Ethereum-based stablecoin, EUR CoinVertible, through its digital asset arm, SG-Forge. The euro-pegged stablecoin targets institutional clients and will be traded under the ticker symbol EURCV. It will only be available to investors who have been onboarded by Societe Generale through its Know Your Customer and Anti-Money Laundering procedures. The stablecoin aims to bridge the gap between traditional capital markets and the digital assets ecosystem, providing benefits such as new solutions for corporate treasury, cash management and cash pooling activities, on-chain liquidity funding, and refinancing solutions.
The demand for stablecoins has grown significantly in recent years as they serve as a hedge against the volatility of cryptocurrencies like Bitcoin and Ethereum. The purpose of stablecoins is to maintain the stability of the value of the digital asset by pegging it to a fiat currency like the US dollar, euro or yen. This stability makes stablecoins attractive to both institutional and retail investors.
Jean-Marc Stenger, the CEO of SG-Forge, said that the institution would assess the interest in the EURCV stablecoin and respond to questions from prospective clients. He stressed that the token would be only available to institutional qualified investors through eligible market platforms, including crypto trading venues. SG-Forge has designed the stablecoin to comply with major market standards including the open-source interoperability and securitization framework known as Compliant Architecture for Security Token, or CAST.
The firm has also taken measures to ensure the complete segregation of the assets backing the value of the stablecoins from the issuer. Furthermore, daily transparency reports and collateral positions will be provided. Stenger confirmed that the EUR CoinVertible smart contract had been audited by the professional services network PwC. For issuing the stablecoin, SG-Forge has been advised by the law firm White & Case. The role of the fiduciary is provided by Equitis Gestion, a private equity firm regulated by the French financial regulator, the Autorité des Marchés Financiers. The stablecoin has been developed in line with the upcoming European digital assets regulations known as the Markets in Crypto-Assets or MiCA framework.
Stenger stated that stablecoins built under a banking-grade structure could increase trust and confidence in the native crypto ecosystem. He expressed his confidence in the potential of stablecoins to deliver innovative solutions to its clients.
Societe Generale has been actively engaging with blockchain and cryptocurrency-related services for several years. In September 2022, the company launched custodial services for crypto fund managers through its Security Services subsidiary. The firm has also been experimenting with issuing security tokens on blockchain technology such as Tezos.
The emergence of stablecoins has significantly changed the crypto landscape, attracting more institutional investors to the industry. However, it has also raised concerns about their regulation and potential impact on monetary policy. The US Congress has recently proposed a new draft bill for stablecoins, which would place greater regulatory requirements on stablecoin issuers.
In conclusion, Societe Generale’s launch of EUR CoinVertible stablecoin through SG-Forge represents a significant step in the firm’s roadmap to offer innovative solutions to its clients. The stablecoin has been designed to comply with major market standards to ensure complete segregation of assets and will be only available to institutional qualified investors through eligible market platforms. The role of the fiduciary is provided by Equitis Gestion, a private equity firm regulated by the French financial regulator, the Autorité des Marchés Financiers. Stablecoins built under a banking-grade structure like EUR CoinVertible have a great potential to increase trust and confidence in the native crypto ecosystem.
