Societe Generale’s Crypto Arm Unveils USD-Pegged Stablecoin on Ethereum and Solana

Societe Generale-FORGE (SG-FORGE), the digital asset arm of French banking giant Societe Generale, is set to launch a new USD-pegged stablecoin – USD CoinVertible (USDCV) – on both the Ethereum and Solana blockchains.

The stablecoin is expected to begin trading in early July.

SG-FORGE’s USD CoinVertible

The development marks the firm’s latest push to merge traditional finance with decentralized infrastructure. The Bank of New York Mellon (BNY Mellon) will serve as the reserve custodian, according to the official press release.

This new product follows the April 2023 launch of the EUR CoinVertible (EURCV), SG-FORGE’s euro-backed stablecoin. Together, the two tokens aim to offer 24/7 fiat-to-stablecoin conversion, with support for use cases such as crypto trading, cross-border payments, on-chain settlement, foreign exchange, and collateral management.

SG-FORGE stated that the tokens are built with compliance at their core – both are classified as Electronic-Money Tokens (EMTs) under the European Union’s MiCA regulatory framework. The firm itself is licensed as an Electronic Money Institution by France’s ACPR. USDCV and EURCV will be available to institutional, corporate, and retail clients through exchanges, brokers, and payment platforms, with liquidity supplied by multiple market makers.

However, people in the United States will not be able to use these products.

USD Stablecoin Launch “Obvious Next Step”

By roping in BNY Mellon, which happens to be a major player in global custody services, SG-FORGE aims to reassure market participants about asset backing and transparency, while also appealing to institutions seeking regulatory clarity in the space.

Commenting on the development, Jean-Marc Stenger, Chief Executive Officer of SG-FORGE, said that the launch of a US Dollar version (USDCV) was the “obvious next step” for the company after the release of a MiCA-compliant EUR stablecoin (EURCV), amidst an increasing market adoption of stablecoins. The exec went on to add,

“The stablecoin market remains largely US dollar-denominated. This new currency will enable our clients, either institutions, corporates, or retail investors, to leverage the benefits of an institutional-grade stablecoin.”