Société Générale's Launches EURCV, a Euro-Pegged Stablecoin for Institutional Users
Société Générale, one of Europe's leading banks, has made a noteworthy move in the world of digital assets by introducing a euro-pegged stablecoin through its subsidiary, SG-Forge. Known as EUR CoinVertible (EURCV), this stablecoin specifically targets institutional clients seeking the advantages of asset tokenization. By utilizing tokenization, Société Générale aims to facilitate faster and more transparent property transfers, reduce settlement, credit, and counterparty risks, and establish a connection with decentralized finance (DeFi). The stablecoin is backed by cash and liquid securities, as outlined in the EURCV whitepaper.
Despite the ongoing crypto bear market, Société Générale's decision to launch a stablecoin demonstrates that prominent financial institutions continue to recognize the value of blockchain-based assets. This move coincides with the introduction of the Markets in Crypto Assets (MiCA) licensing regime by the European Union, and the whitepaper emphasizes that the forthcoming regulations were taken into consideration during the stablecoin's design. The company perceives the digitization of securities and money through distributed ledger technologies (DLT) as the next logical step in constructing digital capital markets—a trend that began in the 1980s when securities transitioned from paper to digital formats.
However, EURCV is unlikely to be the preferred choice for those seeking a decentralized stablecoin, as it is exclusively available to counterparties who have completed Société Générale's compliance procedures. Furthermore, the stablecoin's smart contract code has faced criticism on Twitter due to Société Générale's requirement to issue a transaction for every stablecoin transfer. Nevertheless, Société Générale has emerged as one of the most crypto-forward banks, having already engaged in partnerships with Maker, launched compliant security on the Tezos blockchain, and participated in the issuance of a bond on Ethereum.
The euro-pegged stablecoin market has garnered less attention compared to its dollar-pegged counterparts. The combined market capitalization of euro-pegged assets currently stands at approximately $188.5 million, whereas the largest dollar-pegged stablecoin, USDT, is over 400 times larger, with a market capitalization of $81 billion.
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Société Générale, one of Europe's leading banks, has made a noteworthy move in the world of digital assets by introducing a euro-pegged stablecoin through its subsidiary, SG-Forge. Known as EUR CoinVertible (EURCV), this stablecoin specifically targets institutional clients seeking the advantages of asset tokenization. By utilizing tokenization, Société Générale aims to facilitate faster and more transparent property transfers, reduce settlement, credit, and counterparty risks, and establish a connection with decentralized finance (DeFi). The stablecoin is backed by cash and liquid securities, as outlined in the EURCV whitepaper.
Despite the ongoing crypto bear market, Société Générale's decision to launch a stablecoin demonstrates that prominent financial institutions continue to recognize the value of blockchain-based assets. This move coincides with the introduction of the Markets in Crypto Assets (MiCA) licensing regime by the European Union, and the whitepaper emphasizes that the forthcoming regulations were taken into consideration during the stablecoin's design. The company perceives the digitization of securities and money through distributed ledger technologies (DLT) as the next logical step in constructing digital capital markets—a trend that began in the 1980s when securities transitioned from paper to digital formats.
However, EURCV is unlikely to be the preferred choice for those seeking a decentralized stablecoin, as it is exclusively available to counterparties who have completed Société Générale's compliance procedures. Furthermore, the stablecoin's smart contract code has faced criticism on Twitter due to Société Générale's requirement to issue a transaction for every stablecoin transfer. Nevertheless, Société Générale has emerged as one of the most crypto-forward banks, having already engaged in partnerships with Maker, launched compliant security on the Tezos blockchain, and participated in the issuance of a bond on Ethereum.
The euro-pegged stablecoin market has garnered less attention compared to its dollar-pegged counterparts. The combined market capitalization of euro-pegged assets currently stands at approximately $188.5 million, whereas the largest dollar-pegged stablecoin, USDT, is over 400 times larger, with a market capitalization of $81 billion.
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