Société Générale, France’s third-largest bank, is getting ready to release a stablecoin called EUR CoinVertible (EURCV) on Bitstamp, a Luxembourg-based crypto exchange, as reported by the Financial Times on Dec. 6.
Bitstamp’s website indicates that the stablecoin has been added to the platform, but trading has not yet started as of press time.
What is EURCV?
EURCV is a Euro-pegged stablecoin based on Ethereum with reserves that will be fully backed by cash reserves and high-quality securities. This will give bank customers broad access to the growing 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 follows a recent trend of several traditional financial institutions entering 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 increase USD Coin (USDC) circulation.
Jean-Marc Stenger, Société Générale CEO, expressed optimism about the stablecoin’s launch, anticipating its usefulness in settling various types of trades, including digital bonds, funds, and diverse assets.
Stenger emphasized that EURCV strictly complies with the EU’s MiCA regulations, setting it apart from competitors. Additionally, the design of the stablecoin prioritizes seamless integration with different platforms, promoting 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
This move continues Société Générale’s adoption of blockchain technology for its operations.
On Nov. 30, the bank issued its first digital green bond, a €10 million security token on the Ethereum blockchain. This initiative aims to enhance transparency and traceability through the use of blockchain.
Société Générale also disclosed that the Security Token managed by its SG-FORGE arm received full subscriptions from AXA Investment Managers and Generali Investments.