A Move in Crypto from One of France's Largest Banks: They Will Use This Altcoin Network!

France's third-largest bank, Societe Generale's crypto subsidiary SG Forge, is preparing to launch a US dollar-backed stablecoin aimed at institutional clients on the Ethereum network.

This move will feature the first USD stablecoin issued by a major bank on a public blockchain.

According to a report by the French media The Big Whale, SG Forge plans to expand the mentioned stablecoin to other networks such as Solana following the first launch on the Ethereum network.

Currently, there are no large banks operating on a global scale that have issued a US dollar stablecoin on a public blockchain. JPM Coin, launched by JPMorgan Chase, operates solely on the bank's private and permissioned blockchain network and is only accessible to JPMorgan's clients and partners.

This step for SG Forge will be its second foray into the stablecoin space. The company had launched the EUR CoinVertible (EURCV) token on Ethereum aimed at institutional investors in euros in April 2023. This product had formed the basis of SG Forge's regulatory-compliant digital asset strategy.

The newly issued dollar stablecoin aims to target a much larger market with intense competition. Especially with the increasing demand for tokenized access to dollar liquidity in a regulated manner in the European Union, SG Forge aims to meet this demand. Thanks to the e-money license obtained in accordance with EU law, the company can offer this product within a legal framework, just like Circle, the issuer of USDC.

As the stablecoin market rapidly grows, the total market value of dollar-pegged tokens has approached 250 billion dollars. In contrast, euro stablecoins remain a marginal segment, with only 300 million euros in circulation. SG Forge's EURCV token accounts for approximately 40 million euros of this.