SG-FORGE to Launch New Stablecoin USD CoinVertible

Societe Generale-FORGE (SG-FORGE), the integrated subsidiary of Societe Generale Group dedicated to crypto assets, is to launch a USD-pegged stablecoin, the USD CoinVertible, on both the Ethereum and Solana public blockchains.

The Bank of New York Mellon Corporation (BNY), a global financial services company, will act as reserve custodian, enabling seamless integration between traditional and digital financial ecosystems.

With this move, Societe-Generale becomes the first bank to issue a USD-pegged stablecoin, a sector dominated by crypto-native firms such as Tether and Circle. However, major US banks, including JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup, are reportedly considering issuing a joint stablecoin.

The USD CoinVertible is the second stablecoin issued by SG-FORGE after the EUR CoinVertible launched in April 2023, allowing investors to benefit from a robust access to stablecoin markets and a seamless trading experience on two major currencies.

SG-FORGE will propose to its clients instant 24/7 conversion between fiat currencies and stablecoin, enabling immediate, around-the-clock transactions in both USD and EUR.

USD CoinVertible and EUR CoinVertible are designed to support a wide range of client activities, including crypto trading and cross-border payments, on-chain settlement, foreign exchange transactions, and collateral and cash management.

The stablecoins will be listed on various crypto exchanges and available to institutional, corporate and retail investors through different crypto brokers and payment service providers, with liquidity provided by several reputable market makers. Trading of USDCV is expected to start in July. However, neither USD CoinVertible nor EUR CoinVertible are available to US persons. Despite not offering the USDCV in the US, the bank believes the product would still be seen in a stablecoin market dominated by USD-pegged tokens.

Like the EURCV, the collateral composition and valuation backing the USDCV are publicly disclosed on a daily basis on the SG-FORGE website. The collateral composition complies with stringent eligibility criteria (e.g., minimum rating, liquidity).

BNY will act as a reserve custodian for USDCV, combining its heritage and role as the world’s leading custodian with its deep experience supporting the expanding and evolving digital assets ecosystem, SG-FORGE said.

Compliant With MICA Regulation

Both USD CoinVertible and EUR CoinVertible are Electronic-Money Tokens (EMT) fully compliant with the European Markets in Crypto-assets (MiCA) regulation. SG-FORGE, as stablecoin issuer, is licensed as an Electronic Money Institution (EMI) by the French “Autorité de contrôle prudentiel et de résolution” (ACPR).

SG-FORGE CEO Jean-Marc Stenger said that after the release of a MiCA-compliant EUR stablecoin (EURCV), the launch of a US Dollar version (USDCV) was the obvious next step for Societe Generale–FORGE as market adoption of stablecoins is growing exponentially.

“The stablecoin market remains largely US Dollar denominated. This new currency will enable our clients, either institutions, corporates or retail investors, to leverage the benefits of an institutional-grade stablecoin,” he added.

Carolyn Weinberg, Chief Product & Innovation Officer at BNY, said that they were excited to advance the stablecoin market as the trusted infrastructure for the growing and dynamic digital assets economy.

BNY’s established history and deep expertise across traditional and digital assets, is propelling the future of the financial system across cash, investment management, custody, collateral, on-chain data, payments and beyond, he said.

“The cash market is undergoing a massive transformation, and stablecoins with 24/7 capabilities are catalysing much of this change. They have the potential to enhance resiliency, drive operational efficiencies, and create new opportunities for corporates and investors alike” he added.