Source: AdobeStock / AUFORT Jérome
French banking giant Societe Generale is listing its stablecoin, dubbed EUR CoinVertible, on the Luxembourg-based Bitstamp crypto exchange.
EUR CoinVertible will be fully backed by Euros and issued on the Ethereum public blockchain, SocGen said in a release.
The stablecoin debut by a traditional financial giant marks a significant shift, offering access to digital tokens tracking the price of hard currencies.
The listing will be under Societe Generale Group’s subsidiary SG-FORGE, licensed as a digital asset service provider (DASP).
“With this listing, SG-FORGE offers the opportunity to the crypto ecosystem to diversify its positions and gain access to a robust, stable asset built on Societe Generale’s regulatory and structuring expertise,” says Jean-Marc Stenger, CEO of SG-FORGE.
The French lender’s token would challenge the existing stablecoin dominance, predominantly denominated in US dollars.
Stenger told Financial Times in an interview that 90% of stablecoins are pegged to USD and stressed that the bank finds a place in the field of Euro-denominated stablecoin.
He also hopes that SocGen’s stablecoin will settle trades in digital bonds, funds and other assets. While other financial giants like JPMorgan have their own stablecoin – JPM Coin – pegged to USD, Societe Generale’s EUR CoinVertible will be available widely for trading.
“The best way to channel [investors’] interest is to grow in the usual route and venue which you use in the crypto industry, which is to have your product listed on a crypto exchange.”
Compliance with MiCA
Stenger confirmed that SocGen’s stablecoin – EURCV – aligns with the EU’s flagship Markets in Crypto Assets (MiCA) regulation.
EU introduced MiCA in September 2020, to creating a comprehensive framework for cryptoasset service providers and token issuers. Stenger noted that only “very few stablecoins are compliant with MiCA”.
The stablecoin launch on Bitstamp comes days after SocGen issued its first digital green bond on the Ethereum blockchain network. The bond values 10 million euros and carries a three-year maturity.
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