French financial giant Société Générale officially announces the launch of its USD-pegged stablecoin "EUR CoinVertible (USD)" and deployment on the Ethereum blockchain. This marks the first stablecoin issuance by a major European bank pegged to the US dollar, signaling another important milestone in the convergence of traditional finance (TradFi) and DeFi.
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ToggleSociété Générale's New Stablecoin Strategy: Targeting Institutional Users
The newly launched stablecoin named EUR CoinVertible (USD), although based on the US dollar, continues the name of the euro-pegged stablecoin "EUR CoinVertible" previously launched by Société Générale in 2023. The stablecoin is deployed on Ethereum and managed by SG-FORGE, the bank's digital asset subsidiary responsible for technical development and issuance. The previously launched "EUR CoinVertible" currently has an issuance volume of 477 million.
Unlike most stablecoins targeting the general public, SG-FORGE's new stablecoin is exclusively for institutional investors and complies with the EU's Markets in Crypto Assets Regulation (MiCA).
Why Choose a Stablecoin? Société Générale's Strategic Logic
The logic behind Société Générale's issuance is to enhance the trading and settlement efficiency of traditional assets on the blockchain. According to SG-FORGE CEO Jean-Marc Stenger, the stablecoin will help promote the clearing process of tokenized assets, thereby reducing costs and improving liquidity. He noted that such stablecoins are a "core element" in establishing future financial market infrastructure.
Additionally, this USD-pegged stablecoin is 100% backed by bank reserves, stored in custodian banks approved by the French Central Bank, to ensure transparency and stability.
Confronting Giants: Challenging Tether and Circle's Monopoly
Although the stablecoin market is currently dominated by Tether (USDT) and Circle (USDC), Société Générale does not intend to directly compete with these retail-oriented giants. Stenger emphasized that SG-FORGE offers a "compliant, institutional-focused product" targeting large financial institutions and asset management companies that must adhere to strict regulatory requirements. This strategy positions the bank's stablecoin distinctly from typical DeFi projects and makes it more likely to be integrated into enterprise-level blockchain applications, such as security token offerings (STO) and smart contract automated settlements.
European Banks' Blockchain Trial: More Competitors May Join
Société Générale's entry may encourage more European traditional banks to follow suit. With the MiCA regulation set to be implemented in 2024, the demand for compliant stablecoins across the European financial system is expected to further expand. Market observers note that if this product gains market adoption, more banks may explore issuing their own stablecoins.
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