Societe Generale-FORGE Launches USD CoinVertible Stablecoin on Ethereum and Solana

Societe Generale-FORGE, the digital asset arm of one of Europe’s largest banking groups, is set to launch a USD-backed stablecoin, USD CoinVertible (USDCV), on both Ethereum and Solana blockchains next month. This move marks a significant entry into the stablecoin market by a traditional financial institution, aiming to provide a stable and secure ancillary asset for institutional use, including cross-border payments, foreign exchange (FX), and on-chain settlements.

USDCV will be available exclusively to non-U.S. persons, including institutions, corporates, and retail clients, due to governance considerations. The stablecoin will operate on both Ethereum and Solana, leveraging Ethereum’s established institutional DeFi ecosystem and Solana’s fast and low-cost transactions. This dual deployment strategy is designed to facilitate real-time FX settlements and on-chain collateralization, making USDCV a versatile tool for various financial applications.

BNY Mellon, the world’s largest custodian bank, will act as the reserve custodian for USDCV, adding a layer of credibility and assurance to the stablecoin’s collateral. The reserves and their composition will be disclosed daily on the SG-FORGE website, ensuring full transparency and compliance with MiCA regulations. Only high-grade, liquid assets will be permitted, adhering to stringent risk management rules. This approach positions USDCV as a fully transparent, institution-ready stablecoin, setting it apart from other unregulated digital dollars.

USDCV aims to fill a gap in the stablecoin market by offering a solution that is MiCA-compliant, issued by a licensed Electronic Money Institution (EMI), and backed by transparent, high-quality reserves. This model could reshape stablecoin adoption among major financial entities in Europe and beyond, providing a regulated and trusted alternative to existing stablecoins like USDT and USDC, which operate in a gray legal area for EU institutions.

The launch of USDCV comes at a pivotal moment for Europe’s digital asset industry, as the Markets in Crypto-Assets (MiCA) regulation is now in effect. This regulatory framework defines clear rules for crypto assets, particularly for Electronic Money Tokens (EMTs) like stablecoins. Societe Generale-FORGE, as one of the first licensed financial institutions to issue stablecoins, enjoys a regulatory advantage over its crypto-native competitors that operate within ambiguous or untested legal frameworks.

SG-FORGE’s vision for USDCV extends beyond just payments. The stablecoin will support on-chain repo and lending markets, tokenized securities settlement, corporate cash management and treasury operations, and synthetic FX products and real-time foreign exchange. USDCV could dramatically increase operational efficiency for corporates and banks by powering 24/7, programmable finance, offering borderless, instant, and programmable money compatible with both traditional finance (TradFi) and decentralized finance (DeFi) systems.

Although SG-FORGE has not disclosed the initial market makers, sources close to the project suggest that multiple Tier 1 liquidity providers are already onboard. Trading is expected to begin in early July 2025, with integration across major crypto exchanges and institutional platforms. This includes support through crypto brokers, OTC desks, and payment service providers, expanding access beyond the Web3-native crowd. It’s likely that USDCV will first be deployed in Eurozone-based OTC desks and DeFi liquidity pools, with automated swaps between EURCV and USDCV allowing for seamless FX trading on-chain.

USDCV and EURCV are not available to U.S. persons, nor will they be accessible in U.S. markets. This restriction stems from Securities Act limitations and the cautious stance of SG-FORGE on U.S. regulatory uncertainty. Instead, the stablecoins are being positioned as Europe-first, MiCA-native assets, an emerging trend among institutional players seeking stability and legal clarity outside of the U.S. market.