French banking giant to launch world’s first bank-issued dollar stablecoin on Ethereum

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SG Forge, the crypto and blockchain-dedicated arm of Société Générale, one of Europe’s largest financial institutions, will soon launch a dollar-backed stablecoin on Ethereum, The Big Whale reported Tuesday, citing sources with knowledge of the matter.

The move would make Société Générale the first global banking group to issue a dollar stablecoin on a public blockchain. According to the report, SG Forge also plans to expand the stablecoin to other networks, including Solana, after the initial launch.

As of now, no major global banking group has yet widely issued a US dollar stablecoin on a public blockchain.

JPMorgan Chase has already launched a dollar stablecoin called JPM Coin. However, it operates on a private, permissioned blockchain and is currently restricted to internal use by JPMorgan’s clients and partners.

The upcoming launch will mark SG Forge’s second stablecoin initiative. The firm previously introduced EUR CoinVertible (EURCV) in April 2023 on Ethereum, a euro-denominated token aimed at institutional clients. That product laid the groundwork for SG Forge’s approach to regulated digital assets but was euro-focused.

With this new dollar stablecoin, SG Forge is shifting into a far larger and more competitive market.

Initially targeted at institutional investors, the stablecoin aims to address growing demand in the European Union for secure, regulated access to dollar liquidity in tokenized form. SG Forge’s e-money license under EU law, similar to that held by Circle, the issuer of USDC, allows it to operate such a product legally within the bloc.

The launch comes as the stablecoin market continues to boom, with dollar-pegged tokens commanding a combined market cap of nearly $250 billion. In comparison, euro stablecoins remain a niche segment, with only €300 million in circulation—€40 million of which belongs to SG Forge’s EURCV.

EURCV has been a success, but the bank has faced challenges scaling euro stablecoin adoption, especially under the EU’s Markets in Crypto-Assets Regulation (MiCA). These rules, while offering legal clarity, impose stringent requirements on issuers, including high reserve thresholds and licensing hurdles.

By contrast, the dollar stablecoin market has seen rapid innovation, with non-bank players like Circle and Tether dominating globally. SG Forge’s entry introduces a new dynamic: a regulated, European banking institution offering a compliant alternative to US fintech issuers.

Regulatory clarity and institutional demand set stage for stablecoin breakout

The launch comes as stablecoins enter a new phase of adoption, driven by regulatory momentum, rising institutional interest, and expanding real-world use cases.

In the US, proposed legislation like the GENIUS Act signals growing political support for payment stablecoins, calling for stricter reserve backing and issuer oversight. Though not yet law, these efforts reflect a shift toward formalizing stablecoins within the traditional financial system.

Meanwhile, fintech and traditional financial institutions are converging on stablecoins as key infrastructure. Stripe is acquiring stablecoin platforms, while Visa and MasterCard are rolling out stablecoin-based products, embedding digital dollars into mainstream payment systems.

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