Société Générale, France’s third-largest bank, is preparing to launch its own stablecoin called EUR CoinVertible, pegged to the Euro and compliant with MiCA regulations. This stablecoin will be listed on the cryptocurrency exchange Bitstamp today and made available to participants in the crypto market.
According to the Financial Times, Société Générale will start trading its own stablecoin EUR CoinVertible on Bitstamp today, making it the first bank to offer its stablecoin to a wide range of investors. This move represents an important step for a traditional financial institution into the world of crypto trading, which is dominated by expert crypto firms.
Stablecoins are digital cash forms that facilitate the buying and selling of cryptocurrencies, tracking the value of fiat currencies. The majority of cryptocurrency transactions, such as Bitcoin, are conducted through stablecoins that are pegged to the value of the US dollar.
The $130 billion stablecoin market is currently dominated by firms such as Tether and Circle, with ongoing questions about the audits of the reserves backing these stablecoins. Société Générale aims to gain a share in this market with its EUR CoinVertible move.
Jean-Marc Stenger, CEO of Société Générale’s digital asset unit SocGen Forge, stated to the Financial Times, “The crypto ecosystem is currently concentrated on a few stablecoins, 90% of which are in US dollars. We believe that it is necessary for a bank to be present in this area and to have a stablecoin in euros.” He also mentioned that Société Générale’s stablecoin will be open to everyone for trading.