Société Générale’s subsidiary Forge, will launch the euro-denominated stablecoin named CoinVertible on Ethereum.
The initiative aims to bridge the gap between traditional capital markets and the digital-asset ecosystem.
CoinVertible will complement Forge’s product suite, acting as:
- a settlement asset for transactions within the network;
- a corporate cash-management solution;
- an asset for on-chain funding and refinancing;
- a solution for intraday liquidity needs.
The token is structured as a “digital asset” under French law.
Access to CoinVertible is restricted to investors in the Société Générale group who have passed KYC / AML—CFT.
The ‘stablecoin’ reserves are segregated. The composition of the reserves will be published on the company’s website.
“The launch of the stablecoin is an important step in the Societe Generale-FORGE roadmap for delivering innovative solutions to its clients— to institutions and corporations or crypto-industry participants,” — said Forge CEO Jean-Marc Stenger.
In October 2022, EU Council participants signed the MiCA text. The bill includes rules that apply to issuers of unbacked crypto assets, “stablecoins,” trading and custodial platforms.
On 20 April 2023, the European Parliament adopted the MiCA bill.
The main provisions of the rules, including those concerning stablecoins, will take effect one year after adoption.
According to CoinGecko, the capitalization of the stablecoins segment is $132 billion.
Euro-denominated Euro Tether and Stasis Euro, with figures of $225.9 million and $135.7 million, sit at 13th and 16th places in the ranking. The combined market value of agEUR, Celo EUR, and sEUR is $44.2 million.
In March, the issuer of USDC, Circle submitted applications for licenses as a digital asset service provider and as an electronic money institution in France.
The company plans to deploy its flagship product for the local market—the euro-denominated stablecoin EUROC—and commence its recognition under MiCA.