Société Générale A French Bank Launches Euro StableCoin

Société Générale, a major French bank, is launching its euro-backed stablecoin, ‘EUR CoinVertible’, on Bitstamp, a Luxembourg-based exchange. This marks a major move for a traditional bank into the cryptocurrency world, especially in the stablecoin market which is typically dominated by digital asset firms.

Stablecoins are digital tokens that are backed by traditional currencies, they also track the value of fiat/traditional currencies, thus simplifying crypto trading. Most stablecoins are dollar-based, but SocGen's EUR CoinVertible will be fully backed by euros, addressing the market's need for euro-denominated options.

Jean-Marc Stenger, CEO of SocGen Forge, the bank’s digital asset unit, believes there's room for a euro-based stablecoin in the crypto ecosystem. Unlike other big banks' stablecoins, which are limited to institutional clients, SocGen's will be available for broader trading.

Stenger envisions the stablecoin settling trades in digital bonds and other assets as more traditional financial institutions engage with digital ledgers. He added that SocGen’s stablecoin aligns with the upcoming EU digital assets regulation, Mica, and is designed to be used across various platforms without exposing users to the bank's risks.

Recently, Axa Investment Managers used SocGen's stablecoin for a digital green bond investment. The stablecoin is designed to be secure, with the euros backing it held in a trust managed by a third party, ensuring direct recourse for token holders.