Societe Generale Launches US Dollar-Pegged Stablecoin on Ethereum and Solana

In a Tuesday press release, French multinational universal bank Societe Generale unveiled a new era of stablecoin innovation with the Bank of New York Mellon (BNY) custodianship. 

According to Societe Generale-FORGE (SG-FORGE), the crypto-focused arm of the Societe Generale group is launching its second stablecoin, USD CoinVertible (USDCV), on the Ethereum and Solana public blockchains.

The recent landmark follows the successful debut of the euro-pegged EUR CoinVertible (EURCV) in April 2023. This further cements another milestone in bridging traditional finance with the digital asset ecosystem. 

BNY Partnership

Notably, BNY, a global leader in financial services, will serve as the reserve custodian. The financial firm will ensure that all stablecoin assets are fully secured while maintaining transparency on daily collateral composition on the SG-FORGE website.

The collaboration with BNY brings decades of custody expertise, marking the initiative’s commitment to regulatory compliance and operational resilience. Additionally, it positions USDCV as a catalyst for transforming global financial transactions.

The stablecoin is designed as an Electronic Money Token (EMT) compliant with the European Markets in Crypto-Assets (MiCA) regulation. For perspective, USDCV will offer investors an institutional-grade option for crypto trading, cross-border payments, and on-chain settlements.

SG-FORGE provides 24/7 instant conversion between fiat currencies and stablecoins, available in both USD and EUR. The goal is to provide seamless access to institutional, corporate, and retail investors. 

However, the firm would not allow United States residents to use the stablecoin.

Enhancing Global Finance with Dual-Blockchain Strategy

The launch of USDCV on both Ethereum and Solana reflects a strategic choice to leverage the strengths of these leading blockchains. Conversely, the launch offers efficient trading and settlement across diverse markets, thanks to the capabilities of the USDCV stablecoin, which leverages the strengths of both Ethereum and Solana. 

Notably, Ethereum’s established smart contract infrastructure will tend to complement Solana’s high-speed transaction capabilities. Meanwhile, trading of the USDCV stablecoin will commence in early July. Upon debut, several crypto exchanges and reputable market makers will add support for USDCV, ensuring liquidity. 

Meanwhile, SG-FORGE’s latest move aligns with the growing adoption of stablecoins. For perspective, a recent report by Cointab revealed that prominent tech giants, including Apple, Airbnb, Google, and X, are considering integrating stablecoins to help reduce global payment costs and enhance efficiency.