December 10, 2023

Societe Generale Pioneers as the First Banking Giant to Introduce a Stablecoin on Ethereum

EURCV, an ERC20 token, is now being unveiled by Societe Generale FORGE, a subsidiary of the renowned French banking group Societe Generale. This stablecoin, tied to the euro, is set to operate on the Ethereum blockchain, as reported by the crypto exchange Bitstamp.

Societe Generale FORGE, a subsidiary of the esteemed French banking institution Societe Generale, is making waves by introducing EUR CoinVertible (EURCV), a stablecoin linked to the euro, on the Ethereum blockchain. This significant development has been disclosed in a recent post by Bitstamp, a prominent cryptocurrency exchange.

EURCV, functioning as an ERC20 token, is meticulously designed to offer a cryptocurrency with minimal volatility, maintaining a steady value in line with the euro. The stablecoin is supported by cash deposits and cash equivalents denominated in EUR, ensuring a secure foundation for its stability.

Societe Generale emphasizes the implementation of robust legal structures to guarantee the segregation and accessibility of reserve assets for token holders. To facilitate trading, crypto exchange Bitstamp is opening order books for the EURCV/USDT and EURCV/EUR trading pairs. Additionally, Flowdesk, a cryptocurrency market maker, has been chosen to provide liquidity and active market-making services for EURCV on Bitstamp and other participating exchanges.

Guilhem Chaumont, CEO of Flowdesk, expressed enthusiasm about the partnership with SocGen-FORGE, stating:

“We are thrilled to partner with SG-FORGE as a designated market maker, a pivotal role in realizing our shared vision of a tokenized financial future. Looking ahead as we approach 2024, we envision a transformative impact where compliant blockchain-based operations by institutions will drastically increase in volume.”

Initially, Societe Generale will enable EURCV deposits and withdrawals exclusively for investors who have been whitelisted by the bank. The institution affirms that its existing Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance procedures will be applied to onboard digital token holders.

While not the first euro stablecoin, EURCV distinguishes itself by being the first to secure the backing of a major regulated European bank. Noteworthy stablecoins in the past include one issued by the Brazilian National Social Development Bank in 2018, backed 1-for-1 by the Brazilian real. Circle and Tether have also ventured into the space, launching euro-pegged tokens targeted at retail investors.

The launch of EURCV closely follows Societe Generale's milestone achievement of issuing its first bond on the public Ethereum blockchain. This €100 million digital green bond garnered full subscription from institutional asset managers AXA and Generali.

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