The Societe Generale–Forge (the crypto division of Societe Generale) has launched an entirely new stablecoin pegged to the Euro for institutional clients. During the announcement of the new stablecoin, dubbed EURCV, it was stated that it is based purely on the Ethereum blockchain, and would be offered to bridge the gaps between both traditional capital markets and digital assets. Moreover, EURCV would be only available to the investors on board by Societe Generale via its already existing Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
The new stablecoin was planned for launch based on the rapidly growing demand for an entirely new settlement asset for all on-chain transactions. The EURCV stablecoin complies with a number of already specified major market standards, which also include open-source interoperability and a securitization framework. In addition, Societe Generale made it clear that it would offer complete transparency reports, coupled with collateral positions regarding the stablecoin.
The CEO of Societe Generale, Jean-Marc Stenger said,
“In the coming weeks, Societe Generale-Forge will assess interest from potential customers and answer their questions to drive gradual adoption. The token will be available exclusively to institutional qualified investors through qualified market platforms.”
EURCV was developed keeping in mind the upcoming European digital asset regulations, also widely known as the MiCA Framework. The masses believe that any stablecoin built under the shadow of a banking-grade structure has great potential for boosting overall trust and confidence in the world of crypto. The launch of the new stablecoin proves the commitment of Societe Generale to progress in the world of crypto with its crypto and blockchain-related developments.
Congress to Draft a Stablecoin Legislation from Scratch
Apart from Societe Generale’s launching of a new Euro-pegged stablecoin, it has come to light that the US House Financial Services Committee has now turned its attention towards stablecoins. It is suspected that legislation regarding stablecoins would be drafted from scratch.
However, one of the reasons for taking such a step is the belief that crypto assets must be separated from the baking system at all costs. As per lawmakers, the recent bank runs, like that of Signature, openly displayed the dangers of allowing shadow-banking products like stablecoins to issue deposit-like products without any insurance from the FDIC.
With the stablecoin bill, there shall be a regulatory framework for these assets at the state and federal levels. Plus, there will be a two-year moratorium for new stablecoins, while there will be set standards for the interoperability, reporting, and enforcement of these stablecoins. However, it is yet to be seen how these developments impact the stablecoin market as a whole.