More and more major financial institutions are launching their own stablecoin.
This is the case of the Société Générale Group, via its subsidiary SG Forge, which operates a euro-based stablecoin called euro CoinVertible or EurCV. SoGé’s stablecoin is designed to facilitate financial transactions and develop new services thanks to the associated traceability.
EurCV stablecoin description
A quick reminder: the stablecoin issued by Société Générale subsidiary SG Forge is a digital asset designed to maintain a stable value against the euro. Unlike cryptocurrencies such as Bitcoin, whose value can be highly volatile, stablecoins aim to offer price stability, making them more suitable for everyday use and commercial transactions.
Société Générale, through its subsidiary SG Forge, has issued this stablecoin with the aim of facilitating financial transactions and payments in the financial services sector. Using blockchain technology, Société Générale’s stablecoin could enable money transfers that are faster, cheaper and more transparent than traditional money transfer methods.
This can be particularly useful in cross-border or international transactions, where delays and fees can be significant. By offering a fast and cost-effective way to transfer value, Société Générale’s stablecoin can potentially reduce friction in the financial system and make transactions more efficient for businesses and individuals.
The EurCV stablecoin is 100% backed by fiat euros, i.e. traditional euros deposited in a bank account. Technically, the SG Forge subsidiary has chosen to operate its in-house stablecoin on the Ethereum blockchain, the main blockchain used worldwide.
Market capitalization and volumes
The weight of a stablecoin is measured by its market capitalization, which corresponds to the total value of stablecoins in circulation.
As of February 15, 2024, EurCV’s total capitalization stood at 11.15 million euros. A good start! It also means that the Société Générale Group has deposited 11.15 million euros in a bank account to guarantee the existence of each EurCV.
Another indicator of a stablecoin’s weight is its trading volume. Société Générale’s stablecoin is off to a good start, with an average transaction volume of €320,000/day over the last 30 days, representing €10 million in transactions in just one month. And more and more trading days are exceeding €1M.
You can follow the EurCV price and volumes here on the Coingecko website.
Practical application
On November 30, 2023, Société Générale issued its first tokenized green bond in the amount of €10M, registered on the Ethereum blockchain, with ESG data transparency and traceability .
These tokens were subscribed by AXA Investments Managers and Generali Investments. These investors had the option of paying for these green bonds with the EurCV stablecoin, thus facilitating the settlement operation for their investment.
The Compte eco team is keeping a close eye on developments in EurCV, and may soon be adding it to its assets, to complement the other Euro and USD stablecoins already in the portfolio.
