The first major bank to launch an Ethereum stablecoin is Societe Generale
The ERC20 token, known as EURCV supports fiat currencies that may be traded for it.
The 159-year-old French banking corporation Societe Generale has a new venture, EUR CoinVertible (EURCV), a stablecoin generated on the Ethereum blockchain that is tethered to the Euro. This news was announced in a recent article by the crypto exchange Bitstamp.
An ERC20 token, EURCV, aims to create a stable cryptocurrency with minimal volatility, pegged to the Euro. Deposits and equivalents denominated in EUR serve as collateral for the stablecoin.
Strong legal frameworks are in place to guarantee the separation and accessibility of reserve assets for token holders, according to Societe Generale.
Bitcoin and cryptocurrency exchange Bitstamp is now accepting orders for the EURCV/USDT and EURCV/EUR pairings. Flowdesk, a cryptocurrency market maker, has been chosen to facilitate liquidity and actively trade EURCV on Bitstamp and other platforms.
“In order to realize our mutual goal of a tokenized financial future, we are ecstatic to work with SG-FORGE as their approved market maker. As we near the year 2024, we expect to see a revolutionary change as the number of compliant blockchain-based activities conducted by institutions grows exponentially,” said Guilhem Chaumont, CEO of Flowdesk.
At the outset, only investors on Societe Generale’s approved list will be allowed to make deposits and withdrawals using EURCV. When it comes to onboarding digital token holders, the bank says that its current KYC and AML compliance processes would be applicable.
The Euro stablecoin EURCV is not the first of its kind, but it does have the support of a large regulated European bank. The Brazilian National Social Development Bank, a state-owned bank in Brazil, released stablecoins in 2018 that were 1:1 backed by the Brazilian real. Tether and Circle have also introduced retail-oriented coins tied to the euro.
The debut of EURCV follows Societe Generale’s first bond offering on the public Ethereum blockchain. Institutional investors AXA and Generali bought out the whole €100 million digital green bond.