Societe Generale Subsidiary to Issue Euro-Denominated Stablecoin

1 year ago 63

Released Euro denominated stablecoin

Forge, a crypto asset (virtual currency) subsidiary of financial giant Societe Generale, announced on the 20th that it will release the stablecoin “EUR CoinVertible (EURCV)”.

EURCV is a value that is tied to the euro and is deployed on the Ethereum (ETH) public blockchain.

Access to EURCV will be limited to investors who have completed the Societe Generale Group’s existing compliance procedures, such as KYC (Know Your Customer) and registered on the company’s platform.

Forge is working with several cryptocurrency exchanges and trusted third-party platforms to list EURCV and make it available to eligible institutional investors in the coming months. and

Forge CEO Jean-Marc Stenger explained:

Building a stablecoin under a bank-grade robust structure will be a key factor in increasing trust and confidence in the cryptocurrency ecosystem.

Issuing “EUR CoinVertible” will allow us to provide innovative solutions to institutions and companies dealing with fiat currencies, as well as companies in the cryptocurrency sector, and to support new market infrastructures based on blockchain. A big step up.

Forge cites customer demand as the reason behind the issuance of EURCV. It will be a solution to the demand for “robust settlement assets that support on-chain transactions” and “on-chain liquidity procurement”.

What is a stablecoin

A cryptocurrency whose price is always stable. Stablecoins are a type of cryptocurrency, and unlike volatile assets such as BTC, ETH, and XRP, the purpose is to maintain its value ($1) backed by the US dollar. In addition to US dollar-backed stablecoins (USDT/USDC), there are also stablecoins that use algorithms.

Cryptocurrency Glossary

Emphasis on transparency and safety

Forge said the main features of EURCV are: It can be seen that emphasis is placed on ensuring transparency and safety.

Complete segregation of collateral assets from those of the issuer (forge)
Token holders have direct access to collateral assets
Stringent collateral asset criteria (such as minimum ratings and liquidity standards)
Information such as collateral value and asset composition published on Forge website
Publish the smart contract source code under an open source license

Societe Generale is a megabank in Europe. Its subsidiary Forge had just obtained a license as a digital asset service provider (DASP) from the French financial authorities in 2022.

connection: Financial giant Societe Generale acquires cryptocurrency license in France

The JP Morgan case

Another major financial institution that issues stablecoins is JP Morgan. Since 2020, the bank has issued a US dollar-denominated stablecoin “JPM coin”, which is used for payments between companies that have a deposit account with the bank.

In addition, it is deployed on JP Morgan’s own permissioned blockchain, not on a public blockchain such as Ethereum.

connection: Central Bank of Bahrain succeeds in JP Morgan’s “JPM Coin” demonstration experiment

The post Societe Generale Subsidiary to Issue Euro-Denominated Stablecoin appeared first on Our Bitcoin News.

Read Entire Article