Société Générale, France’s third-largest bank, has taken a significant step into the world of stablecoins by introducing its native euro-pegged stablecoin, marking a notable entry for a European banking giant into this emerging market.
The stablecoin, named EUR CoinVertible (EURCV), is set to make its debut on Bitstamp, a Luxembourg-based cryptocurrency exchange, as reported by the Financial Times.
What sets EURCV apart is its full backing by the euro, providing bank customers with a secure means to engage in the digital asset arena.
This stablecoin will cater to a wide range of customers and can be used for trading purposes.
Jean-Marc Stenger, CEO of Société Générale Forge, emphasized the bank’s role in the ever-evolving cryptocurrency space and underscored the need for a stablecoin denominated in euros.
While the stablecoin market has primarily been dominated by USD-pegged stablecoins like Tether and Circle’s USD Coin, Société Générale’s move is seen as more than just a novelty by Stenger.
Stenger pointed out that EURCV has been strategically developed to facilitate the settlement of trades involving digital bonds, funds, and various assets.
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He also highlighted that the versatility of this stablecoin extends beyond Société Générale’s platform, making it accessible to a broader spectrum of financial service providers.
One notable application of EURCV is its use by Axa Investment Managers for investing in the bank’s digital green bond. This bond has a value of 10 million euros (approximately $11 million) and a three-year maturity period.
Société Générale’s foray into the euro-pegged stablecoin market holds significant implications for the European financial landscape, especially with the impending arrival of the European Union’s Markets in Crypto-Assets Regulation in 2024.
It’s important to note that Société Générale has not been a newcomer to the cryptocurrency domain; the bank has actively offered cryptocurrency exposure to its customer base for several years.
In fact, back in July, Société Générale’s crypto subsidiary, Forge, achieved a milestone by becoming the first company to secure the highest access license for providing cryptocurrency services in France.
In conclusion, the introduction of EUR CoinVertible by Société Générale signifies a noteworthy development in the stablecoin market, particularly within the European banking sector.
This move aligns with the broader trend of traditional financial institutions embracing digital assets and blockchain technology, demonstrating the ongoing transformation of the financial industry.
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