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Societe Generale, a prominent French banking and financial services institution, is set to introduce an Ethereum-based stablecoin via its specialized digital asset division.
Societe Generale-Forge (SG-Forge) revealed the launch of EUR CoinVertible, a euro-pegged stablecoin aimed at institutional clients, on April 20.
The EUR CoinVertible stablecoin will be traded under the ticker symbol EURCV. This new digital asset will only be accessible to investors who have been onboarded by Societe Generale through its established Know Your Customer and Anti-Money Laundering protocols.
“In the upcoming weeks, Societe Generale-Forge will evaluate the interest from potential clients and address their inquiries for gradual adoption,” SG-Forge CEO Jean-Marc Stenger informed Cointelegraph. The token will be available solely to qualified institutional investors via eligible market platforms, including cryptocurrency trading venues.
The EURCV stablecoin is intended to connect traditional capital markets with the digital assets ecosystem. SG-Forge opted to launch this digital asset in response to the increasing demand for a new settlement asset for on-chain transactions. Additional advantages of the stablecoin include enabling new solutions for corporate treasury, cash management, and cash pooling activities, as well as on-chain liquidity funding and refinancing options, the firm stated.
The EUR CoinVertible stablecoin adheres to significant market standards, including the open-source interoperability and securitization framework known as Compliant Architecture for Security Token, or CAST, SG-Forge highlighted. The firm emphasized that it will guarantee “complete segregation” of the collateral assets that support the value of the stablecoins from the issuer and will provide daily transparency reports and collateral positions.
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Stenger mentioned that the EUR CoinVertible smart contract has undergone an audit by the professional services network PwC. For the issuance of the stablecoin, SG-Forge has received guidance from the law firm White & Case. The fiduciary role is fulfilled by Equitis Gestion, a private equity firm regulated by the French financial authority, the Autorité des Marchés Financiers.
Related: US Congress to introduce new draft bill for stablecoins
Moreover, the stablecoin has been developed in accordance with the forthcoming European digital assets regulations known as the Markets in Crypto-Assets, or MiCA, framework.
<pSG-Forge CEO believes that stablecoins constructed under a banking-grade framework possess significant potential to enhance trust and confidence in the native crypto ecosystem. He stated:
“This issuance is a major step in SG-Forge’s roadmap to deliver innovative solutions to its clients, whether real-money institutions and corporates or entities of the crypto industry, and to facilitate the emergence of new market infrastructures based on blockchain.”
As one of the largest banks in France, Societe Generale has been advancing its cryptocurrency and blockchain-related services over recent years. In September 2022, the company initiated custodial services for crypto fund managers through its Security Services subsidiary. The firm has also been actively exploring the issuance of security tokens on blockchain platforms like Tezos.
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