Société Générale becomes first major bank to publicly list stablecoin

investmentweek.co.uk:

Developed by SG-FORGE, the bank’s subsidiary dedicated to cryptoassets, the coin launched Ethereum public blockchain yesterday (6 December) on crypto exchange Bitstamp.

Developed by SG-FORGE, the bank's subsidiary dedicated to cryptoassets, the coin launched an Ethereum public blockchain yesterday (6 December) on crypto exchange Bitstamp.

Unlike 'normal' cryptocurrencies, stablecoins are pegged to a fixed amount, either through backing with assets or an algorithmic process. SG-FORGE said the coins would be backed by euros held by a third party.

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While some banks, such as JP Morgan, have launched stablecoins for internal use, Société Générale's is the first to be listed on a public exchange.

Named EUR CoinVertible, the stablecoin will attempt to overcome some existing problems with stablecoins, pushing them into the mainstream as financial institutions begin to explore digital ledger technology.

The coin aims to meet growing demand for a robust settlement and store-of-value asset for on-chain transactions, an innovative solution for cash management and cash pooling activities and enhanced collateral management.

«Stablecoins embed a promise of stabilisation mechanism, which sets them apart from the main cryptocurrencies and makes a solid and plausible case for the future coexistence of stablecoins and CBDCs,» SG-FORGE's whitepaper noted.

However, following the instability in the crypto market last year, it argued that the «time has come» for projects by financial institutions with strong compliance features and a robust legal framework to respond to regulatory requirements.

Treasury finalises plans to regulate crypto industry

SG-FORCE has