Société Générale, France’s third-largest bank, has debuted its native euro-pegged stablecoin, making it one of the first European banking giants to venture into the stablecoin market.
The EUR CoinVertible (EURCV) stablecoin will debut on the Luxembourg-based Bitstamp crypto exchange, the Financial Times reported. EURCV will be fully backed by the euro, allowing bank customers to participate in the digital asset market. The asset will be available to a broad customer base and can be used for trading.
Jean-Marc Stenger, the CEO of Société Générale Forge, stated that the new stablecoin highlights the bank’s role in the evolving crypto domain and stressed the necessity for a stablecoin denominated in euro.
The private crypto stablecoin market is dominated by United States dollar-pegged stablecoins, with Tether (USDT) and Circle’s USD Coin (USDC) the two largest. While crypto exchange platforms and market leaders like Tether are working toward expanding the stablecoin market to the European region, Stenger called the bank’s move more than a novelty.
The CEO highlighted that the new stablecoin has been developed with a focus on its usage in settling trades involving digital bonds, funds and various assets. He added that the broad applicability of the stablecoin extends beyond Société Générale’s platform, allowing it to be embraced across different financial service providers.
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Axa Investment Managers used EURCV to invest in the bank’s digital green bond. The bond has a value of 10 million euros (around $11 million) and a maturity of three years.
The French banking giant’s move into the euro-pegged stablecoin market might be a major development for the European landscape, particularly with the European Union’s Markets in Crypto-Assets Regulation set to come into force in 2024.
However, Société Générale is not new to the crypto domain and has been actively involved in offering crypto exposure to its customer base for years. In July, the banking giant’s crypto subsidiary, Forge, became the first company to obtain the highest access license for providing crypto services in the country.
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