Société Générale, the third-largest bank in France, has entered the stablecoin market with the introduction of its native euro-pegged stablecoin, making it the first of its kind in the region.
The Financial Times reported that the EUR CoinVertible (EURCV) stablecoin will début on the Bitstamp cryptocurrency exchange in Luxembourg. EURCV will enable bank consumers to participate in the digital asset market by virtue of its complete euro backing. The asset will be accessible to many clients and suitable for trading purposes.
The CEO of Société Générale Forge, Jean-Marc Stenger, stated that the new stablecoin demonstrates the bank’s involvement in the dynamic cryptocurrency industry and emphasizes the need for a euro-denominated stablecoin.
Stablecoins pegged to the United States dollar dominate the private cryptocurrency stablecoin market, with Tether and Circle’s USD Coin being the two largest.
Although market leaders and cryptocurrency exchange platforms, such as Tether, have tried to penetrate the European stablecoin market, Stenger regarded the bank’s action as more than an experiment.
The chief executive officer emphasized that the development of the new stablecoin was predicated on its application in resolving transactions involving digital funds, bonds, and various assets.
Furthermore, he stated that the stablecoin’s wide-ranging utility transcends the platform of Société Générale, enabling its adoption by different financial service providers.
Axa Investment Managers invested in the bank’s digital green bond with EURCV. The bond’s maturity is three years, and its face value is 10 million euros (approximately $11 million).
The entry of the French banking behemoth into the euro-pegged stablecoin market could have a significant impact on the European continent, especially considering the impending implementation of the European Union’s Markets in Crypto-Assets Regulation in 2024.
As an established participant in providing crypto exposure to its clientele for years, Société Générale is not a novice in the crypto sector. Forge, the crypto subsidiary of the banking giant, was the inaugural organization in the nation to secure the highest access license for delivering crypto services in July.
