- Société Générale, France’s third-largest bank, is set to launch its stablecoin.
- EUR CoinVertible stands out by being fully backed by euros.
- Jean-Marc Stenger, CEO of SocGen Forge, expresses confidence in the relevance of a euro-denominated stablecoin.
Société Générale, France’s third-largest bank, is poised to launch its own stablecoin, EUR CoinVertible. The launch is set to happen on the Luxembourg-based cryptocurrency exchange Bitstamp, according to the latest report from the Financial Times. This move positions Société Générale as the first major bank to offer digital tokens tracking the value of hard currencies.
Société Générale asserts that EUR CoinVertible will stand out by being fully backed by euros, in contrast to some stablecoins facing scrutiny over the audit of reserves supporting their tokens, like Tether.
Jean-Marc Stenger, CEO of SocGen Forge, the bank’s digital assets unit, highlighted the concentration of the crypto ecosystem on a few stablecoins, primarily denominated in US dollars. He expressed confidence in the relevance of a euro-denominated stablecoin, emphasizing that there is a place for a bank in this evolving financial landscape.
The crypto ecosystem is highly concentrated on a few existing stablecoins, 90 per cent denominated in US dollars . . . we definitely think that there is a place for a bank in this field and there is a place for a euro [denominated] stablecoin.
Société Générale’s EUR CoinVertible aims for widespread availability, targeting crypto traders at large. Stenger envisions the stablecoin being employed to settle trades in digital bonds, funds, and various other assets as traditional financial institutions explore the potential of digital ledgers.
As the European Union’s flagship digital assets regulation, Markets in Crypto-Assets Regulation (MiCA), comes into effect next year, Société Générale emphasizes its commitment to aligning with these rules, stating that few stablecoins currently comply with MiCA.
Reportedly, the bank’s stablecoin is designed to be versatile, facilitating its use across different platforms and among various financial services players. Société Générale aims to make its stablecoin accessible to anyone interested in using it, whether on the bank’s platform or others within the industry.
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