By Mark Hunter
Published 3 days agoThu Dec 07 2023 08:23:06
Reading Time: 2 minutes
- Société Générale has launched its stablecoin, EUR CoinVertible (EURCV), on Bitstamp
- EURCV is fully backed by cash deposits and has started with an $11.3 million market cap
- Société Générale is the first big bank to offer such a product
Société Générale shocked the cryptocurrency world yesterday by announcing the launch of its stablecoin, EUR CoinVertible (EURCV), on the Bitstamp cryptocurrency exchange, making it the first major bank to venture into the competitive world of digital currency. The move represents a noteworthy step for traditional financial institutions, significantly shifting the landscape of the crypto market. According to Bitstmap, EURCV is backed by deposits in euros and cash equivalents and is secured by a legal structure that provides protection from volatile market conditions.
$11.3 Million Market Cap
Société Générale’s EURCV coin, available globally except in the US and Singapore, has a total supply of 10.5 million, giving it a market cap of $11.3 million. Its market cap currently places it at 44th in the global stablecoin rankings, nestled between the YUSD and USDX stablecoins.
In announcing the launch of EURCV, Bitstamp announced that EURCV/USDT and EURCV/EUR trading pairs will be initially available, with more pairs and purchasing avenues and full trading options opening up once the order books gain sufficient liquidity.
Jean-Marc Stenger, CEO of Société Générale Forge, the bank’s digital assets unit, highlighted that there is significant room in the stablecoin sector for a bank. He envisions the stablecoin facilitating settlements in digital bonds, funds, and other assets on crypto exchanges, considering that the crypto ecosystem is primarily dominated by a few stablecoins, 90% of which are denominated in US dollars. Here’s what he said: “The crypto ecosystem is highly concentrated on a few existing stablecoins, 90 per cent denominated in US dollars . . . we definitely think that there is a place for a bank in this field and there is a place for a euro [denominated] stablecoin.”
MiCA Regulation Factored In
Contrary to other major banks, such as JPMorgan, that issue their own stablecoins, Société Générale is positioning its stablecoin for widespread accessibility in trading. Stenger emphasized that the EUR’s MiCA regulation, set to take effect next year, has been carefully considered to ensure regulatory alignment, further differentiating its stablecoin from others.
Société Générale anticipates that its stablecoin will be leveraged across diverse platforms and various financial services, with no exposure risk to the bank and direct recourse on the collateral asset. As digital currency adoption gains traction, this reflects a broader trend among asset managers and banks harnessing tokenization for assets like bonds and funds. Interested in knowing more? » …Learn More
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