US Dollar Stablecoin Market Sees Major Bank Debut
A French financial institution plans to issue its own greenback-linked token as the first major global bank to enter the US dollar stablecoin market.
Societe Generale-FORGE (SG-FORGE), the crypto subsidiary of Societe Generale, is planning to launch a new stablecoin pegged to the US dollar, according to a statement. The «USD CoinVertible» will be issued on Ethereum and Solana public blockchains with BNY acting as its custodian. Trading is expected to start in early July.
«The stablecoin market remains largely US Dollar denominated. This new currency will enable our clients, either institutions, corporates or retail investors, to leverage the benefits of an institutional-grade stablecoin,» said Jean-Marc Stenger, CEO of SG-FORGE.
EUR-Linked Token
The French bank’s latest US dollar-linked token follows the launch of its euro stablecoin – «EUR CoinVertible» – in 2023 with 42.8 million euros ($48.9 million) in circulation, according to its website. Both stablecoins are classified as electronic money tokens and regulated under the European Union’s crypto rules, MiCA, which was adopted in 2023.
«After the release of a MiCA-compliant EUR stablecoin (EURCV), the launch of a US Dollar version (USDCV) was the obvious next step for Societe Generale–FORGE as market adoption of stablecoins is growing exponentially,» Stenger added.
This marks the first entrance of a major bank into the US dollar-linked stablecoin market. Currently, Tether is the leader in this space with its USDT totaling more than $155 billion in market capitalization, according to data from CoinMarketCap.
