Societe-Generale to Launch Dollar-Backed Stablecoin on Solana 9 Months After $EURCV No-Show

Societe-Generale, a French bank, has announced its intention to become the world’s first major bank to issue a publicly tradable, USD-pegged stablecoin.

“USD-Coinvertible” is expected to launch on both Solana and Ethereum, but only time will tell if Societe Generale will make good on its promise. After announcing in September 2024 that the firm would migrate its existing Euro-backed stablecoin to Solana, $EURCV has yet to surface in the Solana ecosystem. 

Why are TradFi firms now clamoring for onchain integrations?

Societe Generale Targets USD Stablecoin Launch

On June 10, SGForge, the digital asset arm of French bank Societe-Generale announced its plan to launch a MiCa-compliant, dollar-backed stablecoin. Provided no major bank rival beats Societe-Generale to deployment, the launch would make the “USD-Coinvertible” the world’s first USD-pegged stablecoin to be issued by a traditional bank.

According to Societe-Generale, the bank’s upcoming stablecoin is expected to be deployed on both Ethereum and Solana, the industry’s leading Layer-1 blockchains. Public trading is expected to live in July.

SG-FORGE CEO Jean-Marc Stenger is adamant that TradFi companies are eager to see regulated, compliant stablecoins in the crypto industry. Speaking with Reuters, Stenger indicated that SG-FORGE already has over 15 brokers and crypto exchanges onboarded as clients. 

"At the moment, there are no other banking-related players in that space... that's definitely the feedback we have from the market, both corporates, financial institutions, but also crypto exchanges. There is a very, very strong need for well-regulated, robust offering in the crypto and stablecoin space." - Jean-Marc Stenger, SG-FORGE CEO

Tether, the world’s largest stablecoin by market capitalization, currently does not have a license to operate in the European Union under MiCA regulations. This arguably leaves room for challengers to establish themselves in European markets before Tether achieves MiCA compliance.

SG-FORGE has yet to announce if $USDCV will launch with any incentives. New stablecoins often roll out generous rewards to users who provide stablecoins as collateral. This phenomenon was evidenced by the launches of PayPal’s $PYUSD and Paxos’ $USDG, which both saw holders earn boosted yield by lending tokens out on dApps like Kamino.

What Happened to SG’s Euro Stablecoin?

While deeper integrations between TradFi and the onchain world are widely considered a sign of growth for the industry, Societe Generale’s Euro-pegged stablecoin has witnessed little adoption.

EUR-Coinvertible, or $EURCV, is currently live on the Ethereum blockchain with 58 holders. With a circulating supply of $48M, $EURCV constitutes ~0.03% of stablecoin market share on Ethereum. 

In September 2024, SG-FORGE announced plans to migrate the $EURCV stablecoin to Solana. Nine months since this announcement, $EURCV has not yet been deployed in Solana’s onchain economy, with no further updates made public from Societe-Generale.

When asked for further clarity on when network participants could expect to see $EURCV live onchain, Solana Foundation Head of Institutional Growth Nick Ducoff informed SolanaFloor: “Very soon.”

SolanaFloor also engaged Societe Generale for comment on why $EURCV was yet to migrate to Solana. At press time, Societe Generale has declined to respond.

TradFi Seeks Crypto Integration Following Circle Debut

Following the success of Circle’s recent debut on the stock market, traditional financial players are eager to be involved in the blockchain industry. 

After completing its IPO at $31 per share, $CRCL witnessed high demand at listing, surging to an all-time high of $120 within its first 24 hours in the markets. 

According to Coinbase’s Q2 State of Crypto Report, six in ten (60%) of Fortune 500 companies are working on blockchain initiatives. Between Circle’s dramatic ascent and America’s top companies’ exploration of blockchain technology, it is evident that crypto is intertwining with the traditional business world.

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