Societe Generale Launches First Major Dollar-Pegged Stablecoin
[PARIS] On Tuesday (Jun 10), France’s Societe Generale announced plans to introduce a publicly tradable, dollar-backed stablecoin via its digital asset subsidiary, marking the first significant entry of a major bank into the expanding dollar-pegged cryptocurrency market.
The stablecoin, named “USD CoinVertible,” will be launched on both the Ethereum and Solana blockchains, with public trading anticipated to commence in July, according to a statement from SocGen’s crypto division, SG-FORGE. BNY Mellon will act as custodian for the reserves of the stablecoin, as per the bank’s announcement.
Stablecoins are cryptocurrencies usually tied to traditional currencies, most commonly the dollar, enabling large transfers of funds through blockchain networks rather than conventional banking systems.
The sector has experienced swift growth, driven largely by crypto company Tether, which has issued US$155 billion in its dollar-pegged tokens.
In 2023, SG-FORGE introduced a euro-based stablecoin, though its uptake has been limited, with only 41.8 million euros (S$61.4 million) currently in circulation, according to their website.
SocGen clarified that its stablecoins will be classified as e-money tokens and will be subject to regulation under MiCA, the European Union’s comprehensive crypto regulation adopted in 2023.
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Tether currently lacks a license to operate within the European Union under MiCA.
Jean-Marc Stenger, CEO of SG-FORGE, mentioned that there exists a strong demand for a regulated dollar-backed stablecoin.
“Currently, there are no banking-related players in this field … that’s the feedback we’ve received from the market, including corporates, financial institutions, and crypto exchanges,” he stated. “There is an urgent need for a well-regulated, robust option in the crypto and stablecoin sectors.”
SG-FORGE indicated that its token can be utilized for crypto trading, cross-border payments, foreign exchange dealings, and managing collateral and cash. It will be featured on several crypto exchanges, though no further specifics were provided.
The subsidiary is currently onboarding “more than 15” crypto exchanges and brokers as clients, Stenger added.
In the US, Congress is preparing to enact legislation to establish a regulatory framework for stablecoins. Earlier this year, Bank of America indicated a potential stablecoin launch, and other large banks are also contemplating the issuance of a joint stablecoin.
Tether remains the largest stablecoin issuer worldwide. Its CEO cited in a post on X that the company became the seventh-largest purchaser of US government debt in 2024, attributing this to holding its dollar reserves in Treasuries.
Circle, the second-largest issuer, went public in the US stock market on June 5, witnessing a 48 percent surge in its share price on Friday.
Regulatory authorities have long cautioned that stablecoins may impact market stability by linking mainstream finance with the more volatile realms of cryptocurrency markets. REUTERS
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