ISLAMABAD: French banking giant Societe Generale has become the first major bank to introduce a dollar-backed stablecoin.
The new digital currency, called “USD CoinVertible,” will be tradable on both the Ethereum and Solana blockchains starting this July.
This marks a significant milestone as banks enter the rapidly growing market of cryptocurrency stablecoins.
A Regulated Digital Currency Offering
Stablecoins are cryptocurrencies pegged to traditional currencies like the US dollar, enabling fast, blockchain-based transfers of large sums.
Societe Generale’s stablecoin will be regulated under the European Union’s MiCA framework, ensuring compliance and investor protection.
The bank’s digital arm, SG-FORGE, already launched a euro-based stablecoin in 2023, though with limited adoption so far.
Growing Demand and Market Impact
Jean-Marc Stenger, CEO of SG-FORGE, highlighted a strong market demand for a secure, regulated dollar stablecoin from corporates, financial institutions, and crypto exchanges.
The token will support crypto trading, cross-border payments, forex transactions, and collateral management.
BNY Mellon will act as custodian for the stablecoin’s dollar reserves, which will initially be held in cash accounts before being invested in yield-generating assets.
With the stablecoin sector led by players like Tether and Circle, Societe Generale’s move signals growing institutional interest in bridging traditional finance and crypto markets.
Regulators remain cautious about stablecoins’ potential impact on financial stability, but industry experts view regulated offerings as a positive step forward.
