SG-Forge CEO stated that the EUR CoinVertible smart contract was audited by the professional services network PwC before launch.
Societe Generale-Forge (SG-Forge), a regulated subsidiary of the French banking firm Societe Generale, on April 20 announced the launch of EUR CoinVertible, a euro-pegged stablecoin. The Ethereum-based stablecoin will trade under the ticker EURCV and will be available to qualified institutional investors. Investors will have to go through SG-Forge’s Know Your Customer and Anti-Money Laundering procedures.
SG-Forge CEO Jean-Marc Stenger commented:
“In the weeks to come, Societe Generale-Forge will assess the interest from prospective clients and respond to their questions for gradual adoption.”
The EURCV stablecoin is expected to “bridge the gap between traditional capital markets and the digital assets ecosystem” and will be accessible via eligible market platforms. According to SG-Forge, the token was created due to growing demand for a new settlement asset for on-chain transactions. The stablecoin will also provide new solutions for corporate treasury, cash management, and cash pooling activities, on-chain liquidity funding, and refinancing.
SG-Forge revealed that the stablecoin is in total compliance with market standards which include the Compliant Architecture for Security Token (CAST) framework for open-source interoperability and securitization. The firm has pledged to ensure “complete segregation” of the collateral assets that back the value of the stablecoin. It will also provide daily transparency reports as well as collateral positions.
SG-Forge CEO also stated that the EUR CoinVertible smart contract was audited by the professional services network PwC before launch. The firm also enlisted the advisory services of law firm White & Case, with the role of fiduciary being filled by Equitis Gestion, a private equity firm under the jurisdiction of the French financial regulator Autorité des Marchés Financiers.
EUR CoinVertible was developed in compliance with the upcoming Markets in Crypto-Assets (MiCA) framework, a set of regulations for digital asset service providers operating in the region. Stenger believes that stablecoins built under a banking-grade structure are more likely to build trust in the native crypto ecosystem.
“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,” he said.
Societe Generale, one of France’s largest banks, has been active in the crypto and blockchain space in recent years. The bank began providing custodial services for crypto fund managers in September 2022 through its Security Services subsidiary. It has also been looking into issuing security tokens. The issuance of an Etheruem-based stablecoin is notable because it is the first such asset to be deployed on a public blockchain, according to the company. United States-based JPMorgan launched a stablecoin in 2020. However, the in-house stablecoin is used as means of settlement between financial institutions and trades on the bank’s internal Onyx network.
Mercy Mutanya is a Tech enthusiast, Digital Marketer, Writer and IT Business Management Student.
She enjoys reading, writing, doing crosswords and binge-watching her favourite TV series.