France’s third-largest bank, Société Générale, is introducing a stablecoin called EUR CoinVertible (EURCV) on Luxembourg-based cryptocurrency exchange Bitstamp. Financial Times Reported on December 6th.
Bitstamp’s website shows that the stablecoin is listed on the platform, but trading has not yet begun as of press time.
What is EURCV?
EURCV is an Ethereum-based euro-pegged stablecoin whose reserves are fully collateralized by cash reserves and high-quality securities. This will provide the bank’s customers with broad access to emerging digital asset markets.
According to current data from Etherscan, the maximum total supply of the stablecoin is 10.5 million, with only five holders. Bitstamp holds 500,000 units of the stablecoin in two wallets. In contrast, one unmarked address with activity on Polygon and Gnosis as well as the Goerli and Sepolia Ethereum testnets holds a balance of 10 million.
The bank’s move continues a recent trend of several traditional financial institutions leaping into emerging industries. Earlier this year, payments giant PayPal launched a USD-backed stablecoin on Ethereum. Recently, Japanese financial conglomerate SBI Holdings signed a memorandum of understanding (MOU) with stablecoin issuer Circle to promote the distribution of USD Coin (USDC).
Société Générale CEO Jean-Marc Stenger expressed optimism about the launch of stablecoins, predicting that they will be useful for settling various types of transactions, including digital bonds, funds and various assets.
Stenger emphasized that EURCV sets itself apart from its competitors through its strict compliance with the EU’s MiCA regulations. Additionally, the stablecoin’s design prioritizes seamless integration with a variety of platforms, fostering efficient functionality across a variety of financial services.
Highlighting safety measures, Stenger noted that assets are pledged as collateral and held in a trust managed by a third party, ensuring token holders have no risk exposure.
Societe Generale Cryptocurrency Movement
Notably, this move continues Société Générale’s embrace of blockchain technology for its operations.
On November 30, the bank issued its first digital green bond, a security token worth €10 million on the Ethereum blockchain. The initiative aims to improve transparency and traceability through the use of blockchain.
Société Générale also revealed that the security tokens managed by its SG-FORGE segment have received full subscriptions from AXA Investment Managers and Generali Investments.