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(Kitco News) - SG-FORGE, the crypto division of French banking and financial services firm Societe Generale, has announced the launch of EUR CoinVertible (EURCV), a Euro-pegged stablecoin hosted on the Ethereum (ETH) blockchain.
The new token officially launched on Wednesday and is currently available for institutional clients of the bank “seeking to benefit from innovative settlement and cash management solutions.”
According to the press release, EURCV is “designed to bridge the gap between traditional capital markets and the digital assets ecosystem based on the CAST open-source interoperability and securitization framework.” CAST was specifically designed to facilitate the issuance, custody, and OTC trades of financial instruments on a blockchain that are published online in an open-source manner.
Through the CAST framework, EUR CoinVertible will be interoperable and compatible with traditional systems and financial practices, the announcement said.
The launch of the new stablecoin is part of Societe Generale group’s strategy of developing initiatives in the field of digital assets in a secure and transparent framework for institutional investors that abide by banking, legal and regulatory standards.
EUR CoinVertible has been designed in accordance with the French legal framework for digital assets and provides clients with “a settlement asset for on-chain transactions, a solution for corporate treasury, cash management and cash pooling activities, on-chain liquidity funding and refinancing solutions, and a solution for intra-day liquidity needs.”
The collateral assets that back the stablecoin will remain completely segregated from the issuer, and token-holders will have direct access to the collateral assets anytime they wish to convert. The legal structure of the token requires the creation of a business continuity plan that can be enacted “in case of a market or technological event.” All collateral assets must meet stringent and predefined collateral eligibility criteria.
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Data related to the token, including circulating supply, collateral positions, and the value and composition of the collateral, will be made publically available on the SG-FORGE website. Only investors that have been onboarded by Societe Generale group and completed the required compliance procedures, including KYC/AML checks, will be able to access EUR CoinVertible.
“Digital assets with stabilisation mechanisms – i.e. stablecoins – built under a robust banking-grade structure will be a key element to increase trust and confidence in the native crypto ecosystem,” said Jean-Marc Stenger, the CEO of SG-FORGE. “This issuance is a major step in Societe Generale–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 technology.”
In the months ahead, SG-FORGE plans to work with “reputable digital asset exchanges and trusted third-party platforms” to have EUR CoinVertible stablecoin listed as part of an effort “to provide exposure on its product to the largest number of qualified institutional investors.”
