Societe Generale Lists Stablecoin on Bitstamp Exchange
Societe Generale, the French banking giant, is launching its stablecoin called EUR CoinVertible on the Bitstamp crypto exchange based in Luxembourg. The stablecoin will be fully backed by Euros and will be issued on the Ethereum public blockchain. This move by a traditional financial institution signifies a significant shift, as it provides access to digital tokens that track the value of fiat currencies.
The listing of EUR CoinVertible will be done through Societe Generale Group’s subsidiary, SG-FORGE, which is licensed as a digital asset service provider (DASP). The CEO of SG-FORGE, Jean-Marc Stenger, stated that this listing offers the crypto ecosystem an opportunity to diversify their holdings and access a stable asset built on Societe Generale’s expertise.
Challenging USD-Denominated Stablecoins
Societe Generale’s stablecoin denominated in Euros aims to challenge the dominance of stablecoins pegged to the US dollar. Stenger highlighted that 90% of stablecoins are currently tied to USD and emphasized the importance of having a Euro-denominated stablecoin in the market. Additionally, SocGen hopes that their stablecoin can facilitate trades involving digital bonds, funds, and other assets.
“The best way to channel [investors’] interest is to have your product listed on a crypto exchange.”
Compliance with MiCA Regulations
Stenger confirmed that Societe Generale’s stablecoin, EURCV, aligns with the EU’s Markets in Crypto Assets (MiCA) regulation. MiCA was introduced in September 2020 as a comprehensive framework for cryptoasset service providers and token issuers. Stenger noted that only a few stablecoins are currently compliant with MiCA.
Recently, Societe Generale issued its first digital green bond on the Ethereum blockchain network. The bond has a value of 10 million euros and a three-year maturity. The launch of the stablecoin on Bitstamp follows this development.
Hot Take: Societe Generale’s EUR CoinVertible Expands Stablecoin Landscape
Societe Generale’s introduction of EUR CoinVertible on the Bitstamp exchange presents an exciting development in the world of stablecoins. By offering a Euro-denominated stablecoin, Societe Generale aims to challenge the dominance of USD-based stablecoins and provide diversification opportunities to the crypto ecosystem. Additionally, the compliance with MiCA regulations ensures regulatory alignment and trust in the stability of the stablecoin.
This move by Societe Generale indicates a growing acceptance and integration of traditional financial institutions into the cryptocurrency space. As more traditional players enter the market, it is expected that the adoption and use of stablecoins will continue to expand, facilitating efficient and secure transactions in the digital asset landscape.
By
By
By
By
By