French Banking Giant SocGen Launches USD-Pegged Stablecoin on Ethereum and Solana

French banking giant Société Générale’s crypto arm is launching a new US dollar-pegged stablecoin – USDCV. The stablecoin will be issued on the Ethereum and Solana blockchains, a Tuesday announcement noted.

SG-Forge, the bank’s crypto subsidiary, already launched a MiCA-compliant EUR-backed stablecoin, EUR CoinVertible (EURCV), on the Stellar network.

French banking giant @SocieteGenerale crypto subsidiary #SGFORGE launches its MiCA-compliant EUR-backed #stablecoin $EURCV on @StellarOrg.https://t.co/yw0PjFaoLw

This time, the bank has announced the USD CoinVertible (USDCV), which would offer clients instant 24/7 conversion between fiat currencies and stablecoin.

The Bank of New York Mellon Corporation (BNY) would serve as the custodian for the assets backing the stablecoin, the announcement read. The bank has planned for the USDCV trading rollout to commence next month.

“After the release of a MiCA-compliant EUR stablecoin (EURCV), the launch of a US Dollar version (USDCV) was the obvious next step for Societe Generale–FORGE as market adoption of stablecoins is growing exponentially,” said Jean-Marc Stenger, CEO of SG-Forge.

Stenger noted that the stablecoin market is largely USD-denominated. The launch of these “institutional-grade stablecoin” would benefit institutions, corporates or retail investors, he added.

The bank noted that both USDCV and EURCV are among the first stablecoins fully compliant with the EU’s MiCA regulation.

According to a recent report from Bitvavo and Kaiko, MiCA-compliant stablecoins have begun to dominate Europe’s stablecoin market in 2024. Over 91% of the euro-based stablecoin market share in Europe was held by compliant tokens like EURCV.

Both SocGen’s stablecoins are designed to support crypto trading and cross-border payments, on-chain settlement, forex transactions and collateral management.

The stablecoins will be listed on various crypto exchanges, the bank said, adding that institutional, corporate and retail investors can access these through different crypto brokers and payment service providers.

However, USDCV and EURCV are not available for US clients as they are not registered under the US Securities Act.

The announcement arrives at a time when some major banks and fintechs have started different stablecoin initiatives. Analysts at Bernstein Research forecast that global stablecoin circulation could grow to nearly $2.8 trillion by 2028, driven by broader adoption.

Early this year, Standard Chartered partnered with Animoca Brands, and HKT to issue a Hong Kong dollar-backed stablecoin.

Additionally, Bank of America CEO said that the institution is open to launching a stablecoin tied to the U.S. dollar if legal frameworks allow it.

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