Société Générale Launches Euro-Pegged Stablecoin, Paving the Way for European Banking Giants in the Crypto Market

Société Générale Launches Euro-Pegged Stablecoin, Paving the Way for European Banking Giants in the Crypto Market

Crypto News – Société Générale, the third-largest bank in France, has entered the stablecoin market by introducing its own native euro-pegged stablecoin, becoming one of the early European banking giants to explore this space.

The stablecoin, known as EUR CoinVertible (EURCV), is set to make its debut on the Luxembourg-based Bitstamp crypto exchange, as reported by the Financial Times. EURCV is fully backed by the euro, allowing the bank’s customers to actively engage in the digital asset market, offering them a reliable and secure entry point for cryptocurrency trading.

Jean-Marc Stenger, the CEO of Société Générale Forge, emphasized the significance of this stablecoin as it aligns with the bank’s strategic position in the evolving crypto landscape. Stenger also underlined the necessity of having a stablecoin denominated in the euro, catering to the European market’s specific needs.

Currently, the private crypto stablecoin market is dominated by stablecoins pegged to the United States dollar, with Tether and Circle’s USD Coin being the two largest players. While major crypto exchanges and platforms, like Tether, are actively working to expand stablecoin usage in the European region, Stenger believes that Société Générale’s entry into this space is more than just a novelty.

Stenger explained that the development of the new stablecoin was driven by its intended use in facilitating the settlement of trades involving digital bonds, funds, and various assets. He emphasized that this stablecoin’s versatility extends beyond Société Générale’s platform, making it a valuable tool for a wide range of financial service providers.

Notably, Axa Investment Managers has already utilized EURCV to invest in Société Générale’s digital green bond, valued at 10 million euros (approximately $11 million) with a maturity period of three years.

Société Générale’s foray into the euro-pegged stablecoin market holds significant implications for the European financial landscape, particularly in light of the impending European Union’s Markets in Crypto-Assets Regulation, set to be enforced in 2024.

It’s worth noting that Société Générale has a history of active involvement in the cryptocurrency domain, offering crypto exposure to its customer base for several years. In fact, in July, the bank’s crypto subsidiary, Forge, became the first company to obtain the highest access license for providing crypto services in the country.