Société Générale’s Crypto Arm SG Forge Breaks New Ground with First Bank-Issued Stablecoin on Ethereum

Move over Tether—traditional finance is stepping into the stablecoin arena. Société Générale’s blockchain subsidiary SG Forge just announced plans to launch the first-ever bank-issued USD stablecoin on Ethereum. No more waiting for regulatory nods—they’re building it now.

Why it matters: Banks have long eyed crypto with skepticism (or outright hostility), but SG’s move signals a tectonic shift. Suddenly, ’institutional adoption’ isn’t just a buzzword—it’s a live wire.

The fine print: Expect heavy KYC checks and compliance overhead—after all, this is a French bank we’re talking about. But if executed well, it could bridge the gap between DeFi purists and the suit-and-tie crowd.

Bottom line: When legacy finance starts playing by crypto’s rules, you know the game has changed. Now, if only they’d stop charging those outrageous wire fees…

• SG Forge will debut the first bank-issued dollar stablecoin on Ethereum for institutions.
• The stablecoin uses SG Forge’s e-money license for legal use across the European Union.
• Dollar stablecoins now make up nearly $250 billion of the global stablecoin market.

Société Générale’s blockchain subsidiary, SG Forge, is close to launching a stablecoin pegged to the U.S. dollar on Ethereum. This is the first time any central global bank has launched a public, dollar-pegged stablecoin on a public blockchain. The token is made for European institutional investors who need a regulated way to access digital assets and US dollar liquidity.

SG Forge’s entry into the sector shows how banks are now competing with crypto-native firms. Initially, the stablecoin will only operate on Ethereum, though plans are to bring it to other networks like Solana. Sources familiar with the launch say the product will become available soon.

CRYPTO SUBSIDIARY OF FRENCH BANK SOCIETE GENERALE ’SG FORCE’ TO LAUNCH FIRST BANK-ISSUED DOLLAR STABLECOIN ON ETHEREUM

SG Forge’s E-Money License Sets It Apart in Regulated Stablecoin Offerings

With the e-money license, SG Forge can make its stablecoin available in the European Union. Due to the regulatory structure, all digital tokens issued have dollar reserves and are monitored. The decision is made as investors seek more secure and compliant options than those offered by companies like Circle and Tether in the USA.

After the release of EUR CoinVertible in 2023, SG Forge is now launching the company’s first euro-linked stablecoin. The presence of EURCV demonstrated the company’s ability to handle regulated digital assets. However, its participation in the market is still small compared to the vast U.S. dollar stablecoin sector. A wider audience will use a dollar-pegged stablecoin, since only a small fraction of the entire $243 billion stablecoin market is euro stablecoins.

The rules set by Europe pose problems for companies trying to issue stablecoins. MiCA calls for strict regulations on reserves and licensing, so the number of euro stablecoins in the market should decrease. SG Forge’s compliance with these standards gives it an edge as stablecoin regulation tightens in the EU and worldwide.

Stablecoin Adoption Expands as Banks Enter Digital Asset Market

Société Générale is launching a dollar-based stablecoin as the adoption of stablecoins grows rapidly. Stablecoins such as USDC and USDT make up the majority with a combined value of more than $200 billion in the U.S. Circle’s USDC and Tether’s USDT are still the top choices and SG Forge’s entry is a newly regulated stablecoin backed by a prominent European firm.

Traditional banks and payment networks are incorporating stablecoins into their services to stay competitive as demand for digital dollars rises. In addition, Visa, MasterCard, and Stripe are beginning to offer services that include stablecoins, while the GENIUS Act is a possible sign that the U.S. is backing stablecoins with regulation.

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