Market News

French Banking Giant SocGen Set to Launch Dollar-Backed Stablecoin Amid Growing Crypto Integration

Société Générale's cryptocurrency arm, SG Forge, is about to launch a new dollar-backed stablecoin called USD CoinVertible (USDCV), set to trade on Ethereum and Solana.

This move signals a significant shift in traditional finance, as USDCV will be managed by the well-established Bank of New York Mellon for reserve custody.

SG Forge's CEO Jean-Marc Stenger highlighted the surge in stablecoin interest, positioning USDCV as a natural progression following their euro-backed EUR CoinVertible.

This endeavor, part of the European Union's MiCA regulatory framework, aims to integrate traditional finance with digital finance more robustly.

Competing against giants like Tether (USDT) and Circle's USDC, USDCV is expected to cater to various applications in crypto trading and institutional finance.

However, both USDCV and EUR CoinVertible will not be available for U.S. citizens, underscoring the regulatory complexities involved.

In related news, South Korea is also advancing its stablecoin agenda through the proposed Digital Asset Basic Act, which aims to establish a regulated market for local stablecoin issuers.

This proposed legislation, introduced by legislator Min Byeong-deok, will require a capital threshold for stablecoin producers, potentially mirroring regulatory frameworks seen in the U.S. and EU.

Investors in South Korea are optimistic about government backing for cryptocurrency, which could facilitate the emergence of won-based stablecoins as viable alternatives to current leading tokens.

Overall, these developments reflect a robust trend of major financial institutions and governments embracing the stablecoin ecosystem, fostering innovation while adhering to regulatory standards.