Bank-Grade USD Stablecoin Debuts On Ethereum And Solana

(MENAFN- The Arabian Post)

Societe Generale‐Forge has introduced USD CoinVertible, a fully backed US dollar stablecoin launching on Ethereum and Solana, with BNY Mellon named as reserve custodian.

USDCV is the second stablecoin by Societe Generale‐Forge following its euro-pegged EURCV. This institutional-grade token, compliant with MiCA and issued under Societe Generale‐Forge's EMI licence from France's ACPR, will offer 24/7 fiat-to-crypto conversion and multi-currency utility for institutional, corporate, and retail clients-excluding US Persons. Trading is set to commence in early July.

Jean‐Marc Stenger, CEO of Societe Generale‐Forge, framed USDCV as the logical progression from EURCV:“market adoption of stablecoins is growing exponentially,” and the dollar-based token meets clients' demands for institutional-grade stablecoin services. The token is designed to underpin a wide range of on-chain activities, including crypto trading, FX transactions, cross-border payments, and collateral or cash management-supporting seamless settlement across USD and EUR.

BNY Mellon will hold the reserves backing USDCV, reinforcing the stablecoin's institutional foundation. Carolyn Weinberg, Chief Product & Innovation Officer at BNY Mellon, emphasised that 24/7 stablecoin capabilities could enhance operational resilience, generate efficiencies, and unlock novel opportunities across cash, collateral, investment management, and payments.

Both USDCV and its predecessor, EURCV, are categorised as Electronic‐Money Tokens, fully regulated under Europe's Markets in Crypto‐assets regulation. Societe Generale‐Forge maintains public transparency on collateral composition, which adheres to high credit and liquidity standards and is updated daily on its website.

The MiCA-compliant tokens are poised for distribution through institutional trading venues and exchanges. Demand for fiat-backed digital assets backed by traditional financial institutions is gaining momentum across crypto, with market makers ensuring liquidity, brokers bringing user access, and payment service providers facilitating integration.

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The move signifies broader momentum in the stablecoin market. Dollar-pegged stablecoins account for the bulk of the industry, with global market capitalisation in the hundreds of billions, dwarfing euro-pegged variants. Societe Generale‐Forge's expansion into USD addresses this scale, positioning the bank as a bridge between traditional finance and decentralised finance.

Institutional stablecoins face a competitive landscape. Non-bank issuers such as Circle and Tether dominate the public blockchain scene, while banks like JPMorgan have previously issued tokens like JPM Coin on private networks. USDCV, on a public chain, allows Societe Generale to directly compete as a regulated, EU-licensed stablecoin provider.

Expanding beyond Ethereum to Solana adds a strategic dimension: offering cost-effective, diverse blockchain infrastructure to institutional clients and capitalising on Solana's growing ecosystem.

Societe Generale‐Forge's regulatory positioning is central. The subsidiary holds licences as an Electronic Money Institution and Digital Asset Service Provider under France's financial regulators, aligned with MiCA's requirements. Both tokens are not registered under the U.S. Securities Act and will only be offered to non-US persons under Regulation S.

The broader context sees European institutions cautiously entering the competitive stablecoin space. Euro-denominated tokens like EURCV remain niche, often hindered by stringent reserve rules and slower Euro adoption. Regulatory oversight via MiCA, while enhancing legal clarity, restricts operational flexibility, as highlighted by the delisting of Tether from EU platforms.

Societe Generale‐Forge's strategic approach reflects this landscape: build on on-chain euro demand, then expand into the US dollar space where scale and liquidity are strongest. The move supports Europe's ambitions to reduce dependency on US-dollar stablecoins and foster a regulated fiat token ecosystem.

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Market reaction will hinge on liquidity, brokerage integration, and clearing mechanisms. Partnerships with market makers and payment service providers will shape adoption, alongside listings on crypto exchanges. The involvement of BNY Mellon bolsters institutional trust, signalling that banking-grade reserve practices can coexist with blockchain settlement.

Meanwhile, global payment players are integrating stablecoins into mainstream rails. Stripe's stablecoin accounts, Visa and Mastercard's pilot programs, and renewed interest among banks show momentum. These initiatives reflect a broader shift to tokenised fiat as infrastructure rather than niche innovation.

As USDCV enters trading next month, key questions remain: will its regulated status prompt flight from unregistered stablecoins? Can it deliver on liquidity and operational efficiency? And does it set a template for future bank-issued tokens within stringent frameworks like MiCA?

Arabian Post – Crypto News Network

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