Société Générale, France’s third-largest bank, is poised to introduce a stablecoin named EUR CoinVertible (EURCV) on Bitstamp, a Luxembourg-based crypto exchange, the Financial Times reported on Dec. 6.
Bitstamp’s website shows that the stablecoin has been listed on the platform, but trading has yet to begin as of press time.
What is EURCV?
EURCV is an Ethereum-based Euro-pegged stablecoin whose reserves will be fully collateralized by cash reserves and high-quality securities. This would allow bank customers broad access to the emerging digital asset market.
Current Data from Etherscan shows that the stablecoin has a maximum total supply of 10.5 million, with only five holders—Bitstamp holds 500 thousand units of the stablecoin across two wallets. In contrast, one unmarked address, which also has activity on Polygon and Gnosis, as well as the Goerli and Sepolia Ethereum testnets, holds the 10 million balance.
The bank’s move continues a recent trend of several traditional financial institutions leaping into the emerging industry. Earlier in the year, payment giant PayPal launched a USD-backed stablecoin on Ethereum. More recently, Japanese financial giant SBI Holdings signed a Memorandum of Understanding (MoU) with stablecoin issuer Circle to boost USD Coin (USDC) circulation.
Jean-Marc Stenger, Société Générale CEO, expressed optimism about the stablecoin’s launch, foreseeing its utility in settling various types of trades, including digital bonds, funds, and diverse assets.
Stenger emphasized that EURCV strictly adheres to the EU’s MiCA regulations, setting it apart from rivals. Furthermore, the stablecoin’s design prioritizes seamless integration with different platforms, fostering efficient functionality across various financial services.
Highlighting its safety measures, Stenger noted that the asset is collateralized and held in a trust managed by a third party, ensuring no risk exposure for token holders.
Société Générale crypto moves
Notably, this move continues Société Générale’s embrace of blockchain technology for its operations.
On Nov. 30, the bank issued its inaugural digital green bond, a €10 million security token on the Ethereum blockchain. This initiative aims to enhance transparency and traceability through blockchain utilization.
Société Générale also revealed that the Security Token managed by its SG-FORGE arm received full subscriptions from AXA Investment Managers and Generali Investments.