Following the failure of its EUR CoinVertible (EURCV) stablecoin, Société Générale has opted to launch a new dollar-backed stablecoin called USD CoinVertible (USDCV).

The EUR CoinVertible

Société Générale’s EURCV was noteworthy as it marked the first time a regulated bank issued a euro-backed stablecoin under the European Union’s Markets in Crypto-Assets (MiCA) regulations.

Despite being launched two years ago and conforming to MiCA, the EURCV has only seen approximately $47 million in circulation.

USDCV – The Next Step

Jean-Marc Stenger, CEO of SG-Forge, Société Générale’s digital assets arm, stated that a USD-backed stablecoin is the natural progression for the bank. This launch will make USDCV the first major stablecoin issued by a global banking entity.

The new stablecoin is anticipated to be released this summer on Ethereum and Solana blockchains.

A Need for Regulation

While stablecoins have become a $250 billion market, MiCA regulations limit participation from many players within the EU. For instance, Tether, one of the largest stablecoin issuers, is not licensed to operate in this region.

Circle, another significant player, has euro- and dollar-backed stablecoins that are MiCA-compliant but Société Générale believes there remains an opportunity for USDCV given the current landscape.

Currently, there are no other banking-related players in that space. This is definitely the feedback we have from the market – both corporates, financial institutions and crypto exchanges,” Stenger told Reuters.

A USD Coin in Europe

The launch of USDCV by a major European bank like Société Générale has raised some concerns regarding the increasing dependence on foreign currencies within the EU. However, the stablecoin is backed by U.S. banking giant BNY Mellon as its custodian.

According to Société Générale, the stablecoin’s potential use cases in crypto trading, cross-border payments, foreign exchange transactions and cash management outweigh any concerns related to foreign dependence.