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Societe Generale becomes first bank giant to issue a stablecoin on Ethereum

EURCV is an ERC20 token backed by and redeemable for fiat currency.

Societe Generale becomes first bank giant to issue a stablecoin on Ethereum

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Societe Generale FORGE, a subsidiary of the 159-year-old French banking group Societe Generale, is launching EUR CoinVertible (EURCV) a stablecoin tied to the Euro issued on the Ethereum blockchain, according to a new post by crypto exchange Bitstamp.

EURCV is an ERC20 token, designed to provide a low volatility cryptocurrency that maintains a stable value equivalent to the Euro. The stablecoin is backed by cash deposits and cash equivalents denominated in EUR.

Societe Generale states that robust legal structures are in place to ensure the segregation and availability of reserve assets to token holders.

Crypto exchange Bitstamp is opening order books for the EURCV/USDT and EURCV/EUR trading pairs. Flowdesk, a crypto market maker, has been selected to provide liquidity and active market-making for EURCV on Bitstamp and other exchanges.

“We are thrilled to partner with SG-FORGE as a designated market maker, a pivotal role in realizing our shared vision of a tokenized financial future. Looking ahead as we approach 2024, we envision a transformative impact where compliant blockchain-based operations by institutions will drastically increase in volume,” said Guilhem Chaumont, CEO of Flowdesk.

Initially, EURCV deposits and withdrawals will only be enabled for investors whitelisted by Societe Generale. The bank states that its existing KYC and AML compliance procedures will apply to onboarding digital token holders.

While not the first Euro stablecoin, EURCV is the first to have the backing of a major regulated European bank. A state-owned bank in Brazil called the Brazilian National Social Development Bank issued a stablecoin backed 1-for-1 by the Brazilian real in 2018. Circle and Tether have also launched similar euro-pegged tokens aimed at retail investors.

The EURCV launch comes soon after Societe Generale’s first bond issuance on the public blockchain Ethereum. The €100 million digital green bond was fully subscribed to by institutional asset managers AXA and Generali.

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