One of the largest banks in France is reportedly becoming the first traditional financial institution (TradFi) to issue its own stablecoin.
According to a new one report by The Financial Times French bank Societe Generale (SocGen) has launched its own Europe-pegged digital asset – called the EUR ConVertible – on Luxembourg-based crypto exchange platform Bitstamp.
This is the first time a TradFi bank has ventured into the world of stablecoins, which is dominated by crypto companies like Tether (USDT) and Circle (USDC).
As Jean-Marc Stenger, CEO of SocGen Forge, the bank’s digital assets division, tells The Financial Times:
“The crypto ecosystem is heavily concentrated on a few existing stablecoins, which are 90% denominated in US dollars… We definitely think there is a place for a bank in this space and there is a place for a euro. [denominated] stable currency.”
According to Stenger, the bank hopes that EUR ConVertible will be used to settle digital bond and asset transactions. Stenger also notes that the stablecoin will comply with the EU’s MiCA (Markets in Crypto-Asset Regulation) laws, which are expected to come into effect next year.
Moreover, Stenger goes on to say that EUR ConVertible is designed to be compatible with different platforms and financial institutions, adding that its holders will not face exposure to the bank itself.
Recently, Societe Generale also issued the first-ever digital green bond via the Ethereum (ETH) blockchain as a means to increase transparency and traceability around ESG (Environmental, Social, and Governance) data.
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