French financial services and banking institution Societe Generale-Forge (SG-Forge) is launching a stablecoin dubbed EUR CoinVertible (EURCV) which is based on the Ethereum blockchain and pegged to the Euro.
On April 20, Societe Generale-Forge (SG-Forge) announced the launch of EUR CoinVertible, a stablecoin pegged to the euro aimed at institutional consumers.
The stablecoin EUR CoinVertible will be transacted under the symbol EURCV. The new digital asset will only be accessible to investors onboarded by Societe Generale via its existing Know Your Customer and Anti-Money Laundering procedures.
Societe Generale-Forge’s CEO, Jean-Marc Stenger, told Cointelegraph: “In the coming weeks, Societe Generale-Forge will assess the interest of prospective clients and respond to their questions regarding gradual adoption.” The token will be accessible to qualified institutional investors via eligible market platforms, including crypto trading venues.
The EURCV stablecoin aims to bridge the divide between conventional capital markets and the ecosystem of digital assets. In response to the increasing demand for a new settlement asset for on-chain transactions, SG-Forge determined to introduce digital support.
According to the company, additional advantages of stablecoin include activating unique solutions for corporate treasury, cash management, cash pooling activities, and on-chain liquidity funding and refinancing solutions.
According to SG-Forge, the EUR CoinVertible stablecoin conforms to essential market standards, such as the open-source interoperability and securitization framework called Compliant Architecture for Security Token, or CAST.
The company emphasized that it will guarantee “complete segregation” of the collateral assets supporting the stablecoins’ value from the issuer and provide daily transparency reports and collateral positions.
The EUR CoinVertible smart contract has been audited by the professional services network PwC, according to Stenger. The law firm White & Case has advised SG-Forge on the stablecoin issuance. Equitis Gestion, a private equity firm regulated by the French financial regulator Autorité des Marchés Financiers, is the trustee.
In addition, the stablecoin was designed following the forthcoming European regulations for digital assets known as the Markets in Crypto-Assets, or MiCA, framework.
The CEO of SG-Forge believes stablecoins with a banking-grade structure can potentially increase trust and confidence in the native cryptocurrency ecosystem. He said:
“This issuance is a major step in SG-Forge’s roadmap to deliver innovative solutions to its clients, either real-money institutions and corporates or entities of the crypto industry, and to facilitate the emergence of new market infrastructures based on blockchain.”
Societe Generale, one of the largest banks in France, has made strides in cryptocurrency and blockchain-related services over the past few years. The company introduced custody services for crypto fund managers through its Security Services subsidiary in September 2022. Additionally, the company has actively experimented with issuing security tokens on blockchains similar to Tezos.
