Stablecoins are highly attractive. Payments can be settled within minutes and investors have access to many different currencies that they can add to their portfolios. These are only two use cases for stablecoins and judging from their overall market cap, they will not only dominate the crypto space. They have a real chance to drive mass adoption since they tokenize currencies that are demanded by billions of people worldwide. It looks like Societe Generale recognized this potential.

What is EURCV and how does this stablecoin fit into the cryptos ecosystem?

Crypto division introduces EUR CoinVertible

SG Forge, Societe Generale’s crypto division, introduced a stablecoin that is pegged to the euro. The EUR CoinVertible (ticker EURCV) is native to the Ethereum blockchain and according to the company, it is the first asset of its kind that has been issued on a public blockchain.

The brand-new stablecoin will be only available to institutional investors. Therefore, we are not witnessing Societe Generale entering crypto. Despite the relatively small target audience, EURCV could still pose competition to other stablecoin products. Such as EURC which is issued by Circle and EURS by Stasis.

Access to EURCV is limited to investors that are on-boarded through the bank’s compliance procedures. This makes EURCV perhaps the most regulated stablecoin on the market. According to the press release, its purpose is the settlement of transactions, meeting intra-day liquidity needs, corporate treasury, cash management, and cash pooling activities.

Driving innovation under regulation

Today, MiCA was voted into effect by the EU parliament. Starting next year, the EU will become one of the few economic sectors that have regulated crypto and digital assets thoroughly. It is believed that MiCA will have a positive impact on the crypto market and is also driving more players to develop their technologies.

However, EURCV is currently designed in accordance with the French legal framework. EURCV is also to be expected to fulfill all criteria according to MiCA. EUR CoinVertible is supposed to bridge the gap between traditional capital markets and the new economy that is based on digital assets.

The source code of its smart contract is published under the Apache 2.0 open-source license. This is remarkable since many businesses chose to develop proprietary software to retain full control over their product. It remains to be seen if EURCV with its limited access to registered customers can be a game changer in this field.

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