More and more major financial institutions are launching their own stablecoins.
This is the case of the Société Générale group, via its subsidiary SG Forge, which operates a stablecoin based on the euro and called Euro CoInvertible or EurCV. The “SoGé” stablecoin is intended to facilitate financial transactions and to develop new services thanks to the associated traceability.
A quick reminder: the stablecoin issued by Société Générale's subsidiary, SG Forge, is a digital asset designed to maintain a stable value compared to the euro. Unlike cryptocurrencies like Bitcoin, whose value can be very volatile, stablecoins aim to offer price stability, making them more suitable for daily use and commercial transactions.
Société Générale, through its subsidiary SG Forge, issued this stablecoin in order to facilitate financial transactions and payments in the field of financial services. By using blockchain technology, Société Générale's stablecoin could enable fund 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 time and fees can be significant. By offering a fast and economical way to transfer value, Société Générale's stablecoin has the potential to reduce friction in the financial system and make transactions more efficient for businesses and individuals.
The EurCV stablecoin is 100% guaranteed by fiat euros, i.e. traditional euros deposited into a bank account. Technically, the subsidiary SG Forge has chosen to operate its in-house stablecoin on the Ethereum blockchain, the main blockchain used in the world.
The weight of a stablecoin is measured in particular by its market capitalization, which corresponds to the total value of stablecoins in circulation.
As of February 15, 2024, the total capitalization of EurCV was 11.15 million euros. A good start! This also means that the Société Générale group has deposited 11.15 million euros into a bank account to guarantee the existence of each EurCV.
Another indicator to measure the weight of a stablecoin: its trading volume. That of Société Générale is off to a good start, with a volume of transactions of 320,000 €/day on average over the last 30 days, which is already 10 million euros in transactions in one month. And more and more days that exceed €1M in exchanges.
You can follow the EurCV course and its volumes here on the Coingecko website.
On November 30, 2023, Société Générale issued its first tokenized green bond worth €10 million, registered on the Ethereum blockchain, with transparency and traceability of ESG data.
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 transaction for their investment.
The team of Eco account is closely following the developments of EurCV and may soon integrate it into its assets, in addition to the other Euro and USD stablecoins already in the portfolio.
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