Date: 05 December, 2023
In a groundbreaking move within the banking sector, Société Générale, a leading French bank, has achieved a significant milestone by publicly listing a stablecoin, EUR convertible. Developed by SG-FORGE, the bank’s dedicated subsidiary for cryptoassets, this initiative marks a pivotal moment in the evolution of digital currencies within the traditional financial landscape.
Launched on the Ethereum public blockchain via the renowned crypto exchange Bitstamp, EUR CoinVertible challenges the dominance of the US dollar in the stablecoin market. Unlike typical cryptocurrencies, stablecoins maintain a fixed value through asset backing or algorithmic processes. SG-FORGE has ensured that EUR CoinVertible will be backed by euros held by a trusted third party, enhancing its stability and reliability.
This move by Société Générale distinguishes itself from previous stablecoin ventures by central banks, such as JP Morgan, as EUR CoinVertible stands as the first stablecoin to be publicly listed on an exchange. The coin aims to address existing challenges within stablecoins, aiming to integrate them into mainstream financial institutions exploring digital ledger technology.
EUR CoinVertible strives to fulfil multiple purposes, catering to the increasing demand for a secure settlement and store-of-value asset for on-chain transactions. It aims to revolutionise cash management and pooling activities while bolstering collateral management practises.
SG-FORGE’s whitepaper emphasises the stabilising mechanisms inherent in stablecoins, setting them apart from traditional cryptocurrencies and advocating for their coexistence alongside Central Bank Digital Currencies (CBDCs). Stressing the importance of compliance and a robust legal framework, especially aftermarket instability, the initiative highlights the need for projects from financial institutions to meet regulatory standards.
SG-FORGE, having conducted various security token and CBDC experiments since 2019, assures that the new stablecoin won’t pose exposure risks to Société Générale. Jean-Marc Stenger, CEO of SG-FORGE, views this listing as a significant opportunity for the crypto ecosystem, providing access to a stable asset backed by Société Générale’s regulatory expertise.
This milestone is celebrated as a significant step towards mainstream adoption of cryptocurrencies. Stenger emphasises that stablecoins act as bridges between fiat currencies and cryptocurrencies, offering stability and an extensive feature set while promoting financial inclusion—a pivotal achievement in the ongoing evolution of digital currencies.
References:
https://www.ft.com/content/cd733a7c-2e74-412f-b234-6f495c118cc6
https://www.investmentweek.co.uk/news/4154098/sociee-eerale-major-bank-publicly-list-stablecoin