France’s 3rd-largest bank, Société Générale, launches euro-pegged stablecoin
Société Générale, the third-largest bank in France, has entered the stablecoin market by introducing its proprietary euro-pegged stablecoin, marking a significant foray for one of Europe’s leading banking institutions. The stablecoin, named EUR CoinVertible (EURCV), will be introduced on the Bitstamp crypto exchange based in Luxembourg, and it distinguishes itself as the first of its kind in the European region.
Fully backed by the euro, EURCV enables Société Générale’s clientele to actively engage in the digital asset market, offering a versatile option for trading purposes. CEO Jean-Marc Stenger, of Société Générale Forge, emphasized the strategic importance of introducing a stablecoin denominated in euro, underlining the bank’s commitment to adapting to the evolving landscape of the cryptocurrency domain.
Unlike the prevalent dominance of United States dollar-pegged stablecoins, such as Tether (USDT) and Circle’s USD Coin (USDC), Société Générale’s move represents a substantive shift, challenging the status quo in the stablecoin market. Stenger emphasized that the development of this stablecoin was not merely a novelty, positioning it as a practical instrument tailored for settling trades involving digital bonds, funds, and various assets.
Beyond its proprietary platform, Société Générale envisions the broader adoption of EURCV across various financial service providers, fostering a wider utility within the financial ecosystem. Notably, Axa Investment Managers utilized EURCV to invest in the bank’s digital green bond, signaling the stablecoin’s real-world applicability.
Société Générale’s entry into the euro-pegged stablecoin market carries considerable significance within the European landscape, especially in anticipation of the European Union’s forthcoming Markets in Crypto-Assets Regulation scheduled for enforcement in 2024. Despite being a recent development, the bank has a notable history of active involvement in the crypto domain, exemplified by its crypto subsidiary, Forge, obtaining the highest access license for providing crypto services in the country back in July.
