Société Générale, a major French banking and financial services firm, is launching an Ethereum-based stablecoin through its dedicated digital asset arm.
Societe Generale-Forge (SG-Forge) announced the launch of EUR CoinVertible, the euro-pegged stablecoin targeting institutional clients, on April 20.
The EUR CoinVertible stablecoin will trade under the ticker symbol EURCV. The new digital asset will only be available to investors onboarded by Societe Generale through its existing Know Your Customer and Anti-Money Laundering procedures.
“Over the coming weeks, Societe Generale-Forge will gauge interest from potential clients and answer their questions for gradual adoption,” SG-Forge CEO Jean-Marc Stenger told Cointelegraph. The token will be exclusively available to qualified institutional investors through eligible market platforms, including cryptocurrency trading venues.
The EURCV stablecoin is designed to bridge the gap between traditional capital markets and the digital asset ecosystem. SG-Forge decided to launch the digital asset in response to increasing demand for a new settlement asset for on-chain transactions. Other benefits of the stablecoin include the activation of new solutions for corporate treasury, cash management and cash pooling activities, on-chain liquidity financing and refinancing solutions, the firm said.
The EUR CoinVertible stablecoin complies with major market standards, including the open source security and interoperability framework known as the Compliant Architecture for Security Token, or CAST, SG-Forge noted. The firm stressed that it will ensure "complete segregation" of collateral assets backing the value of the issuer's stablecoins and provide daily collateral positions and transparency reports.
Stenger said the EUR CoinVertible smart contract has been audited by the PwC professional services network. For the issuance of the stablecoin, SG-Forge has been advised by the White & Case law firm. The role of trustee is provided by Equitis Gestion, a private equity firm regulated by the French financial regulator, the Autorité des Marchés Financiers.
Related: The United States Congress will introduce a new bill for stablecoins
Additionally, the stablecoin has been developed in accordance with the upcoming European digital asset regulations known as the Markets in Crypto-Assets, or MiCA, framework.
The CEO of SG-Forge believes that stablecoins built under a bank-grade structure have great potential to increase trust in the native crypto ecosystem. He said:
“This issuance is an important step in SG-Forge's roadmap to offer innovative solutions to its clients, whether they are real money institutions and companies or entities in 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 made progress in recent years with cryptocurrency and blockchain-related services. In September 2022, the company Launched Custody Services for Crypto Fund Managers through its subsidiary Security Services. The firm has also been actively experimenting with issuing security tokens on blockchain like Tezos.
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