The world of digital finance is witnessing a significant shift as traditional financial institutions increasingly embrace blockchain technology. One of the latest milestones comes from Societe Generale, one of France’s largest banking groups, through its crypto subsidiary SG-FORGE (SG). The company has announced plans to launch a publicly tradable dollar stablecoin, with trading expected to begin in July 2025.
This upcoming launch marks a strategic expansion for SG, which previously introduced a euro-backed stablecoin in 2023. While that earlier effort—called EUR CoinVertible (EURCV)—has seen limited adoption, circulating at just €41.8 million (approximately $47.6 million), it laid crucial groundwork in regulatory compliance and technical operations under France’s financial watchdog, AMF.
Now, with the planned release of USD CoinVertible (USDCV), SG aims to establish itself as a leading player in the institutional digital asset space by offering both euro and dollar-denominated stablecoins—two of the most widely used currencies in global finance.
Introducing USDCV: A Regulated Dollar Stablecoin
USDCV will be issued on two major blockchains: Ethereum and Solana, enabling fast, secure, and transparent transactions. Designed for 24/7 real-time settlement, the stablecoin will support instant conversions between fiat and digital dollars or euros, streamlining cross-border payments, foreign exchange settlements, collateral management, and crypto trading.
To ensure trust and security, BNY Mellon, a global leader in financial services, will serve as the custodian for USDCV’s reserve assets. This partnership reinforces confidence in the stablecoin’s backing and operational integrity.
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Building on Past Experience
SG’s experience with EURCV has proven invaluable. Despite its modest circulation, the euro stablecoin provided critical insights into navigating complex regulatory environments and operating within strict compliance frameworks. These lessons significantly reduce the time, cost, and risk associated with launching a new dollar-based digital currency.
Jeffrey Ding, Chief Analyst at HashKey Group, emphasizes that this prior experience gives SG a competitive edge:
“Having already operated under AMF oversight, SG has built a solid foundation in both compliance and technical execution—key advantages when entering the more competitive dollar stablecoin market.”
Why Dollar Stablecoins Matter
While EURCV serves niche use cases primarily within Europe, the demand for dollar stablecoins is truly global. The U.S. dollar remains the dominant currency in international trade, reserves, and digital asset markets.
“Offering a dollar stablecoin is essential for SG to become a major digital asset provider,” Ding explains. “It allows them to compete directly with established players like USDC and USDT—and potentially other upcoming bank-issued stablecoins.”
By offering both USD and EUR stablecoins, SG can provide a seamless bridge between traditional finance (TradFi) and decentralized ecosystems (DeFi), enabling clients to manage multi-currency exposures, hedge risks, and execute faster cross-border settlements—all on-chain.
Expanding Access and Use Cases
SG plans to list both USDCV and EURCV on multiple cryptocurrency exchanges and distribute them through brokers and payment providers. This multi-channel approach targets institutional investors, enterprises, and retail users alike.
However, due to regulatory constraints, neither stablecoin will be available to users in the United States. This limitation reflects ongoing challenges in aligning with U.S. financial regulations, particularly around securities laws and anti-money laundering (AML) requirements.
Still, the move positions Societe Generale as a pioneer: if successful, it could become the first major global bank to issue a dollar stablecoin, setting a precedent for others in Europe and beyond.
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Global Banks Enter the Stablecoin Race
SG is not alone in this journey. Financial institutions worldwide are exploring or actively developing their own stablecoin solutions:
- Deutsche Bank is evaluating the creation of a tokenized deposit system to enhance payment efficiency.
- JPMorgan, Bank of America, Citigroup, and Wells Fargo are in early discussions about launching a joint U.S. dollar stablecoin—pending federal legislation.
- Standard Chartered has been selected by Hong Kong’s Monetary Authority to participate in a pilot program for issuing Hong Kong dollar stablecoins.
- In Japan, MUFG, SMBC, and Mizuho are collaborating on Project Pax, a cross-border corporate payment platform using stablecoins.
- Banco Santander is also expanding its digital asset offerings, including preliminary plans for a retail-focused stablecoin initiative.
This wave of institutional involvement signals a broader trend: stablecoins are no longer just crypto-native tools—they are evolving into core components of modern financial infrastructure.
Advantages of Bank-Issued Stablecoins
Compared to non-bank issuers like Circle (USDC) or Tether (USDT), bank-backed stablecoins offer several distinct advantages:
- Institutional Trust & Creditworthiness: Banks carry strong reputational capital, making their stablecoins more appealing to conservative investors and corporations.
- Seamless Integration with Existing Systems: Bank-issued tokens can plug directly into current banking platforms, easing adoption for enterprise clients.
- Efficient On-Ramping/Off-Ramping: With direct access to fiat rails, banks minimize friction and cost when converting between cash and digital assets.
- Proven Asset Management Expertise: Banks have long experience managing large-scale reserves in low-risk instruments like government bonds—ensuring stability and transparency.
As Jeffrey Ding notes:
“Bank-issued stablecoins combine the innovation of blockchain with the reliability of traditional finance—making them ideal for mainstream adoption.”
Challenges Ahead: Market Competition and Distribution Costs
Despite these strengths, challenges remain. One major hurdle is distribution cost. For example, Circle spends heavily to promote USDC, with nearly $1 billion in distribution expenses in 2024 alone—most of which went to Coinbase, its sole issuance partner.
SG must navigate similar dynamics without relying on aggressive revenue-sharing models. Instead, its strategy appears focused on leveraging its existing institutional client base and regulatory credibility to drive organic adoption.
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Frequently Asked Questions (FAQ)
Q: What is USDCV?
A: USDCV (USD CoinVertible) is a regulated dollar stablecoin being launched by SG-FORGE, a subsidiary of Societe Generale. It will be pegged 1:1 to the U.S. dollar and issued on Ethereum and Solana blockchains.
Q: When will USDCV trading begin?
A: Trading is expected to start in July 2025, pending final regulatory approvals and technical preparations.
Q: Can U.S. residents use USDCV or EURCV?
A: No. Due to regulatory restrictions, neither stablecoin will be available to users in the United States.
Q: How is USDCV different from USDT or USDC?
A: While similar in function, USDCV is issued by a regulated European bank with deep integration into traditional financial systems—offering enhanced trust, compliance, and access to institutional clients.
Q: Who is backing the reserves for USDCV?
A: BNY Mellon will act as the custodian for USDCV’s reserve assets, ensuring transparency and security.
Q: Why is launching a dollar stablecoin important for SG?
A: The U.S. dollar dominates global finance. By offering a dollar stablecoin alongside its euro version, SG can serve international clients with cross-border payment, settlement, and hedging needs—expanding its reach beyond Europe.
With its dual-currency stablecoin strategy, Societe Generale is positioning itself at the forefront of the financial industry’s blockchain transformation. As more banks follow suit, the line between traditional banking and digital finance continues to blur—ushering in a new era of efficient, transparent, and globally connected monetary systems.