Robert Steinadler, a month ago
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?
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.
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.
Featured image: © sylv1rob1 / Shutterstock.com
May 18, 2023
Stablecoin issuer Tether (USDT) in its recent reserves report reveals that the company holds approximately 52 thousand BTC, worth a respectable $1.5 billion. This is only a fraction of its total assets but signals an interesting potential trend of institutions allocating a piece of their capital to Bitcoin.
May 01, 2023
Circle, the creator of stablecoin USDC, has launched a protocol that lets users transfer USDC between Ethereum and Avalanche. It will help increase user-friendliness and remove the risk of bridge hacks.
Mar 17, 2023
When it became clear that Circle had $3.3 billion stuck at the Silicon Valley Bank the market went wild. USDC lost its peg and was trading way below 1 US-Dollar. Bear market PTSD set in and the broader crypto media was already discussing if USDC would fail. Fortunately, things turned around shortly after the initial turmoil and Circle was made whole again. This has been a big relief for the market but needs some explanation.
Mar 13, 2023
Stablecoin USDC lost its peg of 1 dollar. In the early hours of past Saturday, it even temporarily fell as low as $0.89. The reason is that Silicon Valley Bank (SVB), which held dollars that backed USDC, went under. Only after the American Government made the assurance that SVB depositors will be made whole, USDC recovered to $0.99.
Sign up to stay informed via our email updates