Subsidiary of Societe Generale introduces Ethereum-based stablecoin linked to the euro


Institutional investors who have passed Societe Generale’s Know Your Customer and Anti-Money Laundering (AML) requirements are the only ones who may purchase the EURCV stablecoin.

EUR CoinVertible, a euro-pegged stablecoin, has been released by Societe Generale-Forge (SG-Forge), a regulated subsidiary of the French financial corporation Societe Generale, for use by eligible institutional customers.

On April 20, SG-Forge announced the new stablecoin will be built on the Ethereum blockchain and be traded under the symbol EURCV. Those who pass Societe Generale’s KYC/AML requirements will be the only ones eligible to purchase the new digital asset.

The goal of the EURCV stablecoin is to unite the worlds of conventional finance and digital assets. As the need for a new settlement asset for on-chain transactions grew, SG-Forge made the decision to release the digital asset. According to the company, Stablecoin also has the added advantage of enabling new solutions for corporate treasury, cash management, cash pooling operations, on-chain liquidity funding, and refinancing.

According to SG-Forge, the open-source interoperability and securitization framework Compliant Architecture for Security Token (CAST) is among the primary industry requirements met by the EUR CoinVertible stablecoin. The company has emphasized that it would give daily transparency reports and collateral positions, as well as “complete segregation” of the collateral assets underpinning the value of the stablecoins from the issuer.

According to Stenger, PwC, a professional services firm, has audited the EUR CoinVertible smart contract. White & Case acted as legal counsel for SG-Forge throughout the stablecoin issuance process. Equitis Gestion, a private equity company authorized to do business in France by the Autorité des Marchés Financiers, acts as the trustee.

The stablecoin has also been designed to comply with the Markets in Crypto-Assets (MiCA) framework, which will regulate digital assets in Europe.

The chief executive officer of SG-Forge thinks that stablecoins with a banking-grade framework might help boost public confidence in the local cryptocurrency market.

Societe Generale, one of the major banks in France, has made strides in recent years with services connected to cryptocurrencies and blockchain technology. The company’s Security Services division began offering cryptocurrency fund managers custodial services in September 2022. Additionally, the company has been exploring the feasibility of issuing security tokens on blockchain platforms such as Tezos.

Also Read: CEO of the failed Turkish cryptocurrency exchange Thodex, Faruk Ozer, is arrested in Istanbul

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