Société Générale Launches Euro-based Stablecoin, EURCV, on Bitstamp Exchange
Summary:
Société Générale, France's third-largest bank, has launched its own euro-based stablecoin, EUR CoinVertible (EURCV), debuting on the Luxembourg-based Bitstamp crypto exchange. Backed by the euro, EURCV allows the bank's customers to engage in the digital asset market. The aim of the stablecoin is to be used in settling trades involving digital assets like bonds and funds. The move is seen as significant for the European financial landscape, especially with the European Union's new crypto regulations due to come into force in 2024.
Société Générale, the third biggest bank in France, has joined the fray in launching its own euro-based stablecoin, making it one of the pioneering European banking institutions in the stablecoin domain. The Financial Times reported that the EUR CoinVertible (EURCV) stablecoin is set for introduction on Bitstamp, a crypto exchange based in Luxembourg. EURCV is guaranteed by the euro, allowing the bank's customers to engage in digital asset market activities. The novel asset will be accessible to a wide range of customers and can be used for trading.
The CEO of Société Générale Forge, Jean-Marc Stenger, asserted that the creation of this new stablecoin emphasizes the institution's role in the continually changing crypto arena, underscoring the demand for a euro denominated stablecoin. The stablecoin market is currently dominated by cryptos pegged to the US dollar, with Tether (USDT) and Circle’s USD Coin (USDC) being the largest. As market leaders like Tether plan to extend the stablecoin market to Europe, Stenger sees the bank's leap as more than just innovation.
Stenger pointed out that the new stablecoin was created with a view to its use in settlement of trades involving digital bonds, funds, and other assets. The versatility of the stablecoin goes beyond the Société Générale platform, paving way for its acceptance across a range of financial service providers.
Axa Investment Managers capitalized on EURCV to invest in the bank's digital green bond, valued at 10 million euros (approximately $11 million) with a maturity span of three years.
This move by Société Générale to introduce a euro-pegged stablecoin might be an important transformation for the European scene, especially with the impending enforcement of the European Union's Markets in Crypto-Assets Regulation, scheduled for 2024.
That being said, Société Générale is not a newbie in the realm of crypto and has been actively providing crypto exposure to its clients for several years. In July, Forge, the bank's crypto subsidiary, was the first entity to receive the highest access license to offer crypto services in France.
Published At
12/6/2023 10:57:58 AM
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