Top French Bank Unveils USDCV, a Dollar-Pegged Stablecoin

# Societe Generale Unveils USD-Linked Stablecoin Amid Rising Blockchain Interest Societe Generale, a prominent French bank, has introduced its USD-linked stablecoin, ‘USD CoinVertible (USDCV),’ as reported by Cryptopolitan on October 10. SG-FORGE, the bank’s cryptocurrency arm, disclosed that transactions with the stablecoin will commence in July, marking a significant shift as traditional finance integrates with digital assets. USDCV will function on both the Ethereum and Solana blockchain networks, boosting its interoperability and adoption potential. The Bank of New York Mellon (BNY Mellon), a key institution in asset servicing, will manage the reserves for the stablecoin. By entering the stablecoin market—traditionally dominated by private sector leaders like Tether and Circle—Societe Generale claims to be the first bank to launch a USD-linked stablecoin. This follows SG-FORGE’s previous release of the Euro-linked stablecoin, EUR CoinVertible (EURCV), in 2023. SG-FORGE aims to provide clients with continuous currency conversion services, supporting transactions in both US dollars and euros. The division emphasized that USDCV, together with EURCV, caters to various customer activities such as cryptocurrency trading, international payments, blockchain settlements, foreign exchange, collateral management, and cash management. # MiCA-Compliant Stablecoin, Excluding U.S. Market Societe Generale plans to offer the stablecoin to cryptocurrency exchanges and institutional investors, but US residents will not be included initially. The stablecoin complies with the European Union’s (EU) Markets in Crypto-Assets (MiCA) regulations, categorizing it as an electronic money token (EMT). SG-FORGE also holds an Electronic Money Institution (EMI) license, reinforcing its regulatory support. Despite excluding the U.S. from USDCV distribution, Societe Generale is optimistic about its appeal in the stablecoin market, predominantly USD-backed. Marc Stenger, CEO of SG-FORGE, stated that following the MiCA-compliant EURCV launch, introducing a dollar-denominated stablecoin was "a natural next step as stablecoin adoption grows." He mentioned that the market remains largely dominated by USD-based assets. BNY Mellon highlighted its role in supporting the stablecoin’s infrastructure, emphasizing its expertise in both traditional and digital assets. # SG-FORGE Faces Challenges in a Competitive Stablecoin Market USDCV's introduction places SG-FORGE in a competitive stablecoin market, where many players struggle to gain market share. Tether’s USDT and Circle’s USDC currently dominate, holding over 80% of the $250 billion global stablecoin supply. Other issuers, like Binance with its BUSD token, have attempted to capture market share but encountered regulatory issues. Binance's BUSD supply peaked above $20 billion but has since declined due to regulatory challenges. The tepid reception of SG-FORGE’s euro-denominated stablecoin may indicate challenges for USDCV. Since its 2023 launch, EURCV’s market cap has remained around $33 million, reflecting limited demand in the euro-pegged stablecoin sector, where Circle’s EURC also holds a supply below $200 million. However, SG-FORGE is positioning USDCV as a MiCA-compliant stablecoin for institutional and retail investors in Europe, potentially boosting its acceptance in the region. # More Banks Likely to Enter the Stablecoin Market While Societe Generale is the first bank to issue a USD-linked stablecoin, it may not be the last. Reports suggest that major U.S. financial institutions—including JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup—are considering joint issuance of stablecoins. According to The Wall Street Journal, these banks are in early discussions, pending the outcome of regulatory developments like the GENIUS Act, which is up for a Senate vote on June 11. If passed, this legislation would introduce new stablecoin rules, with over 100 proposed amendments in discussion. Globally, several other major banks are exploring the stablecoin space. Deutsche Bank in Germany, SMBC in Japan, and Fidelity are among those actively considering similar launches. By bridging traditional banking with blockchain-based finance, Societe Generale’s USDCV signifies a progressive move. However, competition from established and new entrants necessitates that the bank offers a unique value proposition in this rapidly evolving market.