Major Bank Launches Dollar Stablecoin
France’s Societe Generale has made financial history by becoming the first major European bank to launch a publicly tradable, dollar-backed stablecoin. The groundbreaking initiative through its digital asset subsidiary SG-FORGE represents a significant milestone in the convergence of traditional banking and cryptocurrency markets.
The new digital currency, named “USD CoinVertible,” will be issued on both the Ethereum and Solana blockchains, with public trading expected to commence in July. This move positions the French banking giant at the forefront of institutional adoption of digital assets amid growing regulatory clarity in the European Union.
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Regulatory Compliance Drives Innovation
SG-FORGE’s USD CoinVertible represents more than just a new cryptocurrency—it’s a fully regulated electronic money token compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulation. According to Reuters, this regulatory framework provides the security and transparency that institutional investors have been seeking in the digital asset space.
Jean-Marc Stenger, CEO of SG-FORGE, emphasized the market demand for regulated dollar-based stablecoins. The subsidiary has secured licensing as an Electronic Money Institution (EMI) by France’s financial authority, enabling it to offer 24/7 conversion services between fiat currencies and digital tokens.
Building on Previous Success
This dollar-pegged stablecoin follows SG-FORGE’s successful launch of EUR CoinVertible (EURCV) in April 2023, which was designed for institutional clients. The euro-denominated token demonstrated utility and reliability, though its adoption remained limited with approximately 41.8 million euros in circulation according to company data.
The Bank of New York Mellon Corporation (BNY) will serve as custodian for the new stablecoin’s reserves, initially held in cash accounts before being invested in yield-bearing assets. This partnership combines traditional banking expertise with cutting-edge blockchain technology, creating what executives describe as seamless integration between conventional and digital financial ecosystems.
Market Positioning and Competition
Stablecoins have emerged as a crucial bridge between traditional finance and cryptocurrency markets, with sector leaders like Tether issuing over $155 billion in dollar-pegged tokens. According to Cointelegraph, the stablecoin market has processed $94.2 billion in transactions between January 2023 and February 2025, highlighting the growing adoption of these digital assets.
Unlike existing stablecoin providers, SG-FORGE positions itself as offering institutional-grade security and regulatory compliance that many crypto-native companies cannot provide. The company plans to onboard more than 15 cryptocurrency exchanges and brokers as clients, expanding access to both institutional and retail investors.
Photo Source: MoneyReign.com
Use Cases and Applications
USD CoinVertible is designed to support diverse financial activities including crypto trading, cross-border payments, foreign exchange transactions, and collateral management. The stablecoin will be available across multiple cryptocurrency exchanges and accessible through various payment service providers, with several market makers providing liquidity.
The initiative reflects broader institutional adoption trends, as major technology companies and financial institutions explore stablecoin integration. Recent regulatory developments in South Korea and the United States are creating frameworks that could accelerate mainstream adoption of digital currencies for international transfers and everyday transactions.
Strategic Implications for Banking
Societe Generale’s move signals a significant shift in how traditional banks approach digital assets. While other major banks have expressed interest in stablecoins, with Bank of America’s CEO indicating potential plans earlier this year, SG-FORGE has taken the lead in actual implementation.
The launch occurs as regulatory clarity improves globally, making it easier for established financial institutions to enter the digital asset space without compromising compliance requirements. According to SG-FORGE’s official announcement, the stablecoin’s collateral composition and valuation will be publicly disclosed daily, ensuring transparency that traditional banking customers expect.
Future Outlook
As USD CoinVertible prepares for its July launch, industry observers are watching whether other major banks will follow Societe Generale’s lead. The success of this initiative could accelerate the integration of traditional banking services with blockchain technology, potentially reshaping how international payments and currency exchanges are conducted.
The stablecoin will not be available to U.S. persons due to regulatory restrictions, but its European launch provides a template for how established financial institutions can navigate the evolving digital asset landscape while maintaining regulatory compliance and customer trust.
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