Societe Generale-Forge (SG-Forge), a regulated subsidiary of Societe Generale, has launched EUR CoinVertible, a euro-pegged stablecoin for qualified institutional clients.
Announcing the news on April 20, SG-Forge said the new stablecoin is based on the Ethereum blockchain and trades under the symbol EURCV. The new digital asset will only be available to investors who join Societe Generale through its existing know-your-customer and anti-money laundering procedures. SG-Forge CEO Jean-Marc Stenger told Cointelegraph: “In the coming weeks, Société Générale will assess the interest of potential customers and answer their questions for gradual adoption.” The token will be available through qualified marketplace platforms, including Cryptocurrency trading venues) are exclusively available to qualified institutional investors.
The EURCV stablecoin aims to bridge the gap between traditional capital markets and the digital asset ecosystem. SG-Forge decided to launch digital assets in response to the growing demand for new settlement assets for on-chain transactions. Other benefits of stablecoins include activating new solutions for corporate treasury, cash management and cash pooling activities, on-chain liquidity and refinancing solutions, the company said. SG-Forge noted that the EUR CoinVertible stablecoin complies with major market standards, including an open-source interoperability and securitization framework known as the Security Token Compatible Architecture, or CAST. The firm emphasized that it will ensure that the collateral assets backing the stablecoin’s value are “completely segregated” from the issuer and will provide daily transparency reports and collateral positions.
Stenger said the EUR CoinVertible smart contract has been audited by professional services network PwC. To issue the stablecoin, SG-Forge has been advised by the law firm White & Case. The role of trustee is provided by Equitis Gestion, a private equity firm regulated by the French financial regulator, the Autorité des Marchés Financiers. Additionally, the stablecoin was developed to comply with upcoming European digital asset regulations known as the Marketplace in Cryptoassets or MiCA framework.
The SG-Forge CEO believes that stablecoins built under bank-grade structures have great potential to increase trust and confidence in the native crypto ecosystem. He said: “This offering is an important step in SG-Forge’s roadmap to deliver innovative solutions to its clients, whether real money institutions and businesses or entities in the crypto industry, and facilitate the emergence of new blockchain-based market infrastructures.”
One of the largest banks in France, Société Générale has been making inroads in cryptocurrency and blockchain-related services over the past few years. In September 2022, the company launched custody services for cryptocurrency fund managers through its Security Services subsidiary. The company has also been actively trying to issue security tokens on blockchains such as Tezos.
