Société Générale’s SG Forge to Launch Dollar-Backed Stablecoin on Ethereum

Société Générale’s crypto arm, SG Forge, is reportedly preparing to launch a dollar-backed stablecoin on Ethereum, marking a significant move in the digital asset space. This initiative would make SG Forge the first global banking group to issue a public stablecoin tied to the U.S. dollar. The stablecoin is expected to be publicly accessible on Ethereum, with plans to extend support to Solana in the near future. The launch is anticipated in the coming weeks, according to a report.

The introduction of this dollar stablecoin would expand SG Forge’s presence in the digital asset market, following the successful debut of its euro stablecoin, EURCV, in 2023. The new token is initially targeted at institutional investors, leveraging SG Forge’s e-money license to operate legally across the European Union. This move aligns with the growing adoption of stablecoins, as seen with World Liberty Financial’s launch of its own dollar-denominated stablecoin, USD1, which has been utilized in significant financial transactions.

Banks are increasingly exploring stablecoins to stay competitive in the rapidly evolving cryptocurrency landscape. According to industry experts, financial institutions are essential in unlocking the full potential of these tokens. SG Forge’s euro-denominated stablecoin, EURCV, currently has a market capitalization of around $46.5 million, which is significantly smaller compared to competitors like Circle’s EURC token, whose market cap exceeds $237 million. Euro-denominated tokens represent a small fraction of the $243 billion stablecoin market, which is dominated by U.S. dollar stablecoins. Circle’s USDC commands a $60.6 billion market cap, while Tether’s USDT, the market leader, has a $151.6 billion market cap.

SG Forge’s move into the dollar stablecoin market is a strategic response to the accelerating adoption of stablecoins and the need for traditional financial institutions to remain relevant in the digital asset space. By leveraging its existing infrastructure and regulatory compliance, SG Forge aims to provide a stable and secure option for institutional investors, further solidifying its position in the digital asset ecosystem.