Société Générale Launches USD CoinVertible Stablecoin on Ethereum, Solana

Société Générale, a prominent French bank, has made a significant move into the cryptocurrency market by announcing the launch of a publicly tradable dollar-pegged stablecoin. This initiative positions the bank as the first major financial institution to enter the growing market of dollar-anchored cryptocurrencies.

The new digital currency, named "USD CoinVertible," will be issued through the bank's digital asset subsidiary, SG-FORGE. It is set to be released on the Ethereum and Solana blockchains, with public trading expected to commence in July. Stablecoins are a type of cryptocurrency that is typically pegged to traditional currencies, such as the U.S. dollar, enabling large-scale fund transfers through blockchain networks rather than traditional banking systems.

This development follows the rapid growth of the stablecoin sector, largely driven by the cryptocurrency company Tether, which has issued stablecoins totaling 155 billion U.S. dollars. SG-FORGE previously launched a euro-pegged stablecoin in 2023, but its circulation was limited, with a reported volume of 41.8 million euros (47.62 million U.S. dollars).

Société Générale's stablecoin will be classified as an electronic money token and will be regulated under the EU's landmark cryptocurrency regulation, MiCA, which was enacted in 2023. Tether has not yet obtained the necessary permits to operate in the EU under the MiCA regulations.

Jean-Marc Stenger, the CEO of SG-FORGE, highlighted the market demand for regulated dollar-pegged stablecoins. He stated, "Currently, there are no other banks in this space... This is the feedback we have received from enterprises, financial institutions, and even crypto exchanges. There is a strong demand for well-regulated and robust products in the crypto and stablecoin sectors."

Stablecoin issuers typically accept customer dollar deposits and issue cryptocurrency tokens in return, profiting by investing these dollar reserves in interest-bearing assets such as bonds. Stenger revealed that the Bank of New York Mellon will serve as the custodian for SG-FORGE's reserves, with initial funds held in cash accounts before being invested in other assets.

SG-FORGE's stablecoin is designed for use in cryptocurrency trading, cross-border payments, foreign exchange transactions, and margin and cash management. It will be listed on multiple cryptocurrency exchanges, although specific details have not been disclosed.