French banking powerhouse Société Générale is making waves in the cryptocurrency sector with the upcoming launch of its US dollar-pegged stablecoin, dubbed USDCV. This announcement was officially made on Tuesday, revealing that the new stablecoin will be available on both the Ethereum and Solana blockchains.
SG-Forge, the financial institution’s dedicated crypto subsidiary, previously introduced a MiCA-compliant stablecoin backed by the euro, known as EUR CoinVertible (EURCV), which operates on the Stellar network.
French banking giant @SocieteGenerale crypto subsidiary #SGFORGE launches its MiCA-compliant EUR-backed #stablecoin $EURCV on @StellarOrg.https://t.co/yw0PjFaoLw
— Finance Newso.com (@Finance Newso) February 21, 2025
This latest initiative will enable clients to swiftly convert between fiat currencies and the new stablecoin at any time, day or night. The Bank of New York Mellon Corporation (BNY) has been appointed as the custodian for the assets that will underpin the USDCV, as noted in the announcement. Trading for USDCV is slated to begin next month.
Commenting on the launch, Jean-Marc Stenger, CEO of SG-Forge, emphasized that the creation of a US Dollar version (USDCV) follows the success of the euro-backed stablecoin (EURCV), especially as the appetite for stablecoins continues to soar. He highlighted that the market for stablecoins is primarily USD-denominated, indicating that these “institutional-grade stablecoins” are poised to serve a variety of clients, from institutions to individual investors.
USDCV and EURCV: Pioneering MiCA-Compliant Stablecoins
Société Générale pointed out that both USDCV and EURCV are among the first stablecoins to achieve full compliance with the European Union’s MiCA regulation. Recent analysis from Bitvavo and Kaiko indicated that MiCA-compliant stablecoins have gained a significant foothold in Europe’s stablecoin landscape, accounting for over 91% of the euro-backed stablecoin market share in 2024.
Both stablecoins are strategically designed to facilitate activities such as crypto trading, cross-border payments, on-chain settlements, forex transactions, and collateral management. The bank announced that these stablecoins will be accessible on multiple cryptocurrency exchanges, allowing institutional, corporate, and retail investors to engage with them through various crypto brokers and payment service providers.
However, it’s important to note that USDCV and EURCV will not be available to clients within the United States due to their non-registration under the US Securities Act.
Stablecoins Gaining Traction Among Financial Institutions
The timing of this announcement coincides with a broader move among major banks and fintech companies to explore and launch stablecoin initiatives. Analysts from Bernstein Research predict that global stablecoin circulation could surge to nearly $2.8 trillion by 2028, spurred by increasing adoption.
This year, Standard Chartered formed a partnership with Animoca Brands and HKT to issue a stablecoin backed by the Hong Kong dollar. Additionally, the CEO of Bank of America has indicated the institution’s openness to developing a stablecoin tied to the US dollar, contingent on favorable legal conditions.
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