An Ethereum based stablecoin targeting institutional client named “EUR CONVERTIBLE”, has been launched by a major French banking and Financial services firm ‘SOCIETE GENERALE’, through its dedicated asset arm on April 20 2023.
‘’Eur Convertible’’ shall be traded under the ticker symbol “EURCV’’ and shall be only available to investors onboarded by Societe Generale through its existing know your customer and Anti-Money laundering procedures.
CEO of SG-Forge Jean-Marc stenger stated “In the weeks to come, Societe Generale-Forge will assess the interest from prospective clients and respond to their questions for gradual adoption,” The token will be available mainly to institutional qualified investors through eligible market platforms, including crypto trading venues.
Main vision behind the design of EURCV is to bridge the gap between traditional capital markets and the digital assets ecosystem. The digital asset was decided to be launched by SG-Forge in response to the growing demand for a new settlement asset for on-chain transactions. As reported by the firm, the other benefits of stablecoin shall include the activation of new solutions for corporate treasury, cash management and cash pooling activities, on-chain liquidity funding and refinancing solutions.
The EUR CoinVertible stablecoin acts in accordance with the major market standards, including the open-source interoperability and securitization framework known as Compliant Architecture for Security Token, or CAST, SG-Forge noted.
As ensured by the firm there shall be “Complete segregation” of the collateral assets backing the value of the stablecoins from the issuer and will provide daily transparency reports and collateral positions.
The company reported that the smart contract has been audited by the professional services network PwC. For issuing the stablecoin, SG-Forge has been advised by the law firm White & Case. The role of the fiduciary is provided by Equitis Gestion, a private equity firm regulated by the French financial regulator, the Autorité des Marchés Financiers.
Further, the stablecoin has been developed in line with the upcoming European digital assets regulations known as the Markets in Crypto-Assets, or MiCA, framework.
SG-Forge CEO believes that stablecoins built under a banking-grade structure have a great prospective to increase trust and confidence in the native crypto ecosystem. He said :
“This issuance is a major step in SG-Forge’s roadmap to deliver innovative solutions to its clients, either real-money institutions and corporates or entities of the crypto industry, and to facilitate the emergence of new market infrastructures based on blockchain.”
Over the past few years, Societe Generale has been progressing with cryptocurrency and blockchain-related services as one of the largest banks in France. The custodial service was recently launched by the company in September 2022 for crypto fund managers through its Security Services subsidiary. The firm has also been actively experimenting with issuing security tokens on blockchain like Tezos.