By Norah ODonnell
The multinational French-based financial provider Societe Generale has announced plans to release a stablecoin pegged to the Eurodollar known as the EUR CoinVertible. The Societe Generale has tasked the firm’s digital assets unit to develop the stablecoin, centred on the Ethereum network.
Today’s announcement from the Societe Generale team revealed that the stablecoin would be developed to meet the ever-changing needs of institutional investors. After the successful launching of EUR CoinVertible, the stablecoin will be listed on the French trading platform under the unique ticker symbol EURCV.
Benefits of the EURCV Stablecoin
The April 20 update it outlined the conditions for the issuance of the stablecoin. Firstly the investor should be a member of the Societe Generale group.
The investor must fully comply with the Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations stipulated by Societe Generale.
Societe Generale chief executive Jean-Marc Stenger stated that the financial institution plans to host a public participation program to address pressing concerns that might arise on the adoption of EURCV stablecoin. Stenger restated that the digital asset would only be listed on compliant crypto trading platforms.
In his address, Stenger mentioned that the token would be issued to institutional investors, including businesses in the private sector. He confirmed that the development of the stablecoin aimed at addressing the challenges battling the traditional financial sector in France.
Recently the French market has witnessed a spiking demand for on-chain transactions. The high demand has inspired the Societe Generale to seize the available opportunity by developing the stablecoin.
Beyond this, the financial institution has integrated revolutionary technologies to ensure stablecoin meets the market demand. The stablecoin will provide the users with cash management and liquidity funding features.
The EUR CoinVertible stablecoin will provide refinancing services and other innovative financial tools. The EURCV developers has also deployed security tools that meet global compliance standards.
Process and Conditions for Issuing EURCV Stablecoin
The team developed a Compliant Architecture for Security Token (CAST) report that documents the security procedures and outlines interoperability features. Besides the CAST file, the technical team have embraced creative strategies that will offer a complete segregation of collateralized digital assets to support the stability of the stablecoin.
The Societe Generale digital assets arm has modified the system to ensure the daily reports generated by the system support the company’s core values, such as transparency. Also, the system will enable the user to monitor collateral performance.
The financial institution has already engaged external auditors from the accredited audit firm PwC. The completed audit assessed Societe Generale’s financial report to determine the company’s profitability.
According to Stenger, the financial institution has consulted the legal institution White & Case to develop a suitable approach for issuing the new stablecoin. During the engagement with the legal practitioners Stenger and the team observed Equitis Gestion’s fiduciary requirements.
Furthermore, the launching of the stablecoin coincides with the developments of crypto regulations in Europe. An update from watchdog agency dated April 20 revealed that the 27 member states would adopt a new licensing regime captured on the market for crypto assets (MiCA) report.
The European Parliament completed their final vote for the MiCA laws and the legislators approved the regulations. Notably, French, being located in the Western European bloc, the Societe Generale group ensured that the development of the stablecoin conformed with the MiCA requirements.
Stenger is optimistic that the stablecoin will revolutionize the crypto sector. He argued that the robust banking model adopted by the Societe Generale would improve trust and confidentiality when transacting through digital assets.
The stablecoin was developed to ensure that Societe Generale provides cutting-edge financial solutions to customers. Per the April 20 report, launching the stablecoin will enable the Societe Generale to cope with the digital economy.
Ranking among the fast-growing banks in France, Societe Generale Group has leveraged its financial position to integrate crypto, Web3 and blockchain technologies in the banking sector. Last September, the financial institution affiliate company activated a custodial platform to provide financial services to crypto investors.
Besides the custodial service, Societe Generale collaborated with Tezos in 2021 to develop a security token. Since then, the team has conducted multiple pilot projects for the security token.