Banking Giant Societe Generale Rolls Out Euro Pegged Stablecoin On Ethereum

Societe Generale-Forge (SG-Forge), a subsidiary of one of the leading European banking and financial services providers, Societe Generale, has just launched “EUR CoinVertible”, a stablecoin pegged to Euro (EUR) on the Ethereum (ETH) blockchain.

Over the recent few years, stablecoins have garnered huge popularity within the crypto-asset ecosystem. High inflation has likely led to a steep rise in the usage of these coins.  This is mainly because stablecoins offer more stability than other digital tokens. After all, they are backed by assets.

Similar to cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), stablecoins operate on the blockchain. However, the key difference is that their value is pegged 1:1 to a financial asset, usually the US dollar.

New Stablecoin To Bridge Gap Between Crypto And Traditional Finance

According to an official press release, SG-Forge will offer the new stablecoin to institutional clients as a means of bridging the gap between traditional capital markets and digital assets.

The stablecoin EUR CoinVertible will be traded under the ticker symbol EURCV and will be only available to investors onboarded by Societe Generale through its existing Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

The token will be available exclusively to institutional qualified investors through eligible market platforms, including crypto trading venues.

Societe Generale–FORGE, a fully integrated and regulated subsidiary of Societe Generale Group, has built an open, secure and institutional-grade platform for digital asset operations, underpinned by full banking level safety and regulatory compliance.

— Societe Generale Group (@SocieteGenerale) April 20, 2023

As per the company, the new crypto offering has been designed in conjunction with banking, legal and regulatory standards. Societe Generale will use EURCV to facilitate cross-border transactions, allowing its customers to transfer Euros quickly and efficiently across borders.

Additionally, the bank plans to leverage the blockchain technology underlying its stablecoin to improve the efficiency of its financial services. Jean-Marc Stenger, Chief Executive Officer at SG-FORGE noted that in the coming future, stablecoins will be a key element to increase trust and confidence in the crypto ecosystem. He added,

“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.”

Stablecoins Use Cases Surge

The move marks a significant step towards the adoption of blockchain technology by traditional financial institutions. Recently, the National Australia Bank (NAB) revealed it will soon launch a stablecoin dubbed “AUDN” that will be pegged to the Australian Dollar (AUD) and will be on the Ethereum network. Last month, three Japanese banks – Tokyo Kiraboshi Financial Group, Minna no Bank, and The Shikoku Bank decided to experiment with stablecoin payments.