Thursday, April 20, 2023

Societe Generale’s Crypto Arm Unveils Euro Stablecoin on Ethereum

 SocGen Forge also revealed plans to have the stablecoin listed on digital asset exchanges in the coming months. 

Societe Generale’s crypto arm – SG Forge – has announced the launch of a stablecoin pegged to the euro on Ethereum, dubbed EUR CoinVertible.

The latest offering will be accessible to only those institutional investors qualified on the basis of Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

The EURCV Stablecoin

According to the official press release, EUR CoinVertible is based on the Ethereum blockchain and will be traded under the ticker symbol EURCV.

The asset aims to bridge the gap between traditional capital markets and digital assets. It is being touted as the first public blockchain stablecoin issued by a subsidiary of a global systemically important bank (G-SIB).

SG-Forge said that EUR CoinVertible has been designed to cater to the increasing client needs, such as settlement assets for on-chain transactions, a solution for corporate treasury. Other focus areas include cash management, cash pooling activities, on-chain liquidity funding, and refinancing solutions, as well as for the purpose of intra-day liquidity needs.

The Paris-based bank’s crypto unit further highlighted that EUR CoinVertible is fully in line with banking, legal and regulatory standards. This includes the open-source interoperability and securitization framework of Compliant Architecture for Security Token (CAST). The stablecoin has been audited by the professional services network PwC.

Commenting on the latest offering, Jean-Marc Stenger, Chief Executive Officer at SG-FORGE stated,

“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.”

MiCA Delayed Again

The latest development comes in the backdrop of Europe Union lawmakers voting in favor of a new crypto licensing regime – MiCA.

This essentially makes the EU the first major jurisdiction in the world to roll out a comprehensive crypto law. The new rules for the industry, which will cover the 27-country bloc, are expected to come into effect over the next two years.

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