Societe Generale, a prominent French banking and financial services company, has unveiled an Ethereum-based stablecoin through its digital asset subsidiary, Societe Generale-Forge (SG-Forge). The euro-pegged stablecoin, known as EUR CoinVertible, is designed specifically for institutional clients and was officially launched on April 20.
EUR CoinVertible: A New Institutional Stablecoin
The EUR CoinVertible stablecoin, traded under the ticker symbol EURCV, will be exclusively accessible to investors who have been onboarded by Societe Generale following their stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
Jean-Marc Stenger, CEO of SG-Forge, stated that the company would assess the interest of potential clients in the coming weeks and address their inquiries to facilitate a gradual adoption process. The token will only be available to accredited institutional investors via eligible market platforms, encompassing cryptocurrency trading venues.
Bridging Traditional Capital Markets with the Digital Asset Ecosystem
SG-Forge created the EURCV stablecoin in response to the increasing demand for a novel settlement asset for on-chain transactions. The stablecoin connects traditional capital markets with the digital assets landscape.
This new digital asset is expected to activate innovative solutions for corporate treasury, cash management, and cash pooling activities. Additionally, the firm envisions on-chain liquidity funding and refinancing solutions as potential benefits of the stablecoin.
Compliance with Market Standards and Regulatory Frameworks
The EUR CoinVertible stablecoin adheres to leading market standards, including the open-source interoperability and securitization framework called Compliant Architecture for Security Token (CAST), as highlighted by SG-Forge. Furthermore, the company emphasizes that it will guarantee the “complete segregation” of the collateral assets that underpin the stablecoin’s value from the issuer. Furthermore, it will provide daily transparency reports and collateral positions.
The EUR CoinVertible smart contract has been audited by the professional services network PwC. Law firm White & Case advised SG-Forge on issuing the stablecoin, while French private equity firm Equitis Gestion, regulated by the Autorité des Marchés Financiers, assumes the fiduciary role.
Moreover, the stablecoin has been developed in compliance with the forthcoming European digital asset regulations, known as the Markets in Crypto-Assets (MiCA) framework.
Fostering Trust and Confidence in the Crypto Ecosystem
SG-Forge’s CEO believes that banking-grade stablecoins have immense potential to enhance trust and confidence in the native crypto ecosystem. Stenger elaborated:
“This issuance is a significant milestone in SG-Forge’s roadmap to deliver innovative solutions to its clients, including real-money institutions, corporates, and entities within the crypto industry. Furthermore, it aims to facilitate the emergence of new market infrastructures based on blockchain technology.”
As one of France’s largest banks, Societe Generale has been steadily advancing its cryptocurrency and blockchain-related services in recent years. In September 2022, the company introduced custodial services for crypto fund managers through its Security Services subsidiary. Additionally, the firm has actively experimented with issuing security tokens on blockchain platforms like Tezos.