Societe Generale Launches USDCV Stablecoin on Solana and Ethereum

Societe Generale, a prominent European financial institution, has announced the launch of USD CoinVertible (USDCV), a U.S. dollar-pegged stablecoin. This stablecoin will be available on both the Solana and Ethereum networks, marking Societe Generale as the first major European bank to issue a dollar-backed stablecoin on public blockchains.

USDCV will be issued through SG-Forge, Societe Generale’s digital asset division, which specializes in blockchain-based financial solutions. SG-Forge collaborates with BNY Mellon, a New York-based financial services company, which will handle custody services for USDCV. This new dollar-based stablecoin follows the launch of EUR CoinVertible (EURCV), a pegged stablecoin introduced by SG-Forge in April 2023. The U.S. dollar's dominance in global financial markets and its prevalence in the stablecoin sector made the creation of a dollar equivalent a logical next step for the bank.

The primary goal of launching USDCV is to offer institutional-grade digital money that can be utilized by a wide range of clients. Like EURCV stablecoins, USDCV is well-regulated and follows strict guidelines under the Markets in Crypto-Assets (MiCA) regulations, which were signed into law in 2023. These regulations aim to establish clear and fair rules for digital money. Additionally, USDCV will be classified as an Electronic Money Token (EMT), which is regulated under MiCA. By adhering to these regulations, Societe Generale demonstrates its commitment to safety and trust, making its coins more reliable than many others in the market.

This move by Societe Generale comes at a time when there is growing global interest in stablecoins. Many banks and companies are exploring the potential of stablecoins, with some big U.S. banks reportedly working together on new stablecoin plans. Stripe is also in discussions with global banks about integrating stablecoins into its services. The stablecoin market is expanding rapidly, with the total value of stablecoins reaching over 250 billion dollars earlier this month. The market is currently dominated by two large stablecoins, Tether’s USDT and Circle’s USDC. The entry of regulated institutions like Societe Generale may alter the landscape, as governments and lawmakers are paying closer attention to the stablecoin sector. In the United States, the GENIUS Act is moving forward, although it has sparked debate. In South Korea, lawmakers have proposed a new system requiring licenses for stablecoin issuers.