Société Générale Unveils US Dollar Stablecoin on Ethereum and Solana

French banking giant Société Générale, through its crypto subsidiary SG-Forge, has announced the launch of a new US dollar-pegged stablecoin, USD CoinVertible (USDCV). This marks a significant step for a major European bank entering the dollar stablecoin market, with BNY Mellon providing custody services for the reserves. The stablecoin will be available on both the Ethereum and Solana blockchains.

Key Takeaways

• Société Générale's crypto arm, SG-Forge, is launching a US dollar-pegged stablecoin, USDCV.

• BNY Mellon will serve as the reserve custodian for USDCV.

• The stablecoin will be issued on the Ethereum and Solana blockchains.

• USDCV is designed to be MiCA-compliant, following SG-Forge's euro-denominated stablecoin, EURCV.

• Trading for USDCV is expected to commence in early July, with access limited to non-US clients.

A Strategic Move Into The Dollar Stablecoin Market

SG-Forge's decision to launch USDCV comes as a natural progression after its successful introduction of the euro-denominated EUR CoinVertible (EURCV) in April 2023. Jean-Marc Stenger, CEO of SG-Forge, emphasized that a dollar-backed product was an "obvious next step" given the overwhelming dominance of the US dollar in the global stablecoin market. This move positions Société Générale as one of the first major European banks to issue a US dollar stablecoin on public blockchains.

Regulatory Compliance And Institutional Adoption

Both USDCV and EURCV are designed as Electronic-Money Tokens (EMTs) and comply with Europe's Markets in Crypto-Assets (MiCA) regulations. MiCA, which became effective in June 2023, provides a unified regulatory framework for digital assets across European jurisdictions. This regulatory adherence is crucial for fostering trust and facilitating broader institutional adoption of stablecoins.

Enhancing Financial Ecosystems

BNY Mellon's role as the reserve custodian for USDCV is pivotal, enabling seamless integration between traditional and digital financial ecosystems. Carolyn Weinberg, Chief Product & Innovation Officer at BNY, highlighted the ongoing transformation in the cash market, with stablecoins catalyzing much of this change through their 24/7 capabilities. USDCV aims to provide instant 24/7 conversion between fiat currencies and stablecoins, supporting a wide range of client activities including crypto trading, cross-border payments, on-chain settlement, foreign exchange transactions, and collateral and cash management.

Market Impact And Future Outlook

The launch of USDCV aligns with a growing global interest from traditional financial institutions in the stablecoin market, which recently surpassed $250 billion. While the market is currently dominated by Tether (USDT) and Circle (USDC), Société Générale's entry signifies increasing mainstream acceptance and integration of digital assets within regulated financial frameworks. It is important to note that neither USDCV nor EURCV will be available to "US Persons."

Sources

• French bank Societe Generale to launch US dollar-pegged stablecoin on Ethereum and Solana, The Block.

• Société Générale confirms launch of new stablecoin on Ethereum, Solana, Crypto Briefing.

• SocGen’s SG-Forge Unit Unveils USD Stablecoin (USDCV) on Ethereum, Solana Blockchains, CoinDesk.

• Société Générale-Forge Launches USD-denominated Stablecoin, Cointelegraph.