After its initial euro-backed stablecoin failed to gain traction, Société Générale is now launching a new stablecoin, pegged to the U.S. dollar.

The Paris-based bank’s EUR CoinVertible (EURCV), issued two years ago, marked an important milestone as it was the first instance of a regulated European bank offering a euro-backed stablecoin.

Compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which govern crypto and stablecoins, EURCV currently has only about $47 million in circulation.

Natural Step for Société Générale

Jean-Marc Stenger, CEO of SG-Forge, the digital assets division of Société Générale, informed Reuters that launching a U.S. dollar-backed stablecoin is the logical next move for the bank. This new coin, called USD CoinVertible (USDCV), will be launched this summer on both Ethereum and Solana blockchains.

A Need for Regulation

Despite the $250 billion market size of stablecoins, MiCA regulations restrict many entities from trading in the EU. For instance, Tether, which issues one of the world’s leading stablecoins, is not licensed to operate within this region.

Licensed Players and Market Demand

While Circle, another major player in the stablecoin space, operates under MiCA regulations and has both euro- and dollar-backed stablecoins circulating successfully, Société Générale believes that a USDCV is still necessary. Stenger stated, There are no other banking-related players offering such services currently. This need is strongly felt by corporates, financial institutions, and crypto exchanges.”

The USD Coin in the EU

The move for Société Générale to issue a stablecoin is significant because it addresses concerns about reliance on foreign currencies and companies in the EU. USDCV will be custodied by U.S. bank BNY Mellon, yet Société Générale argues that the potential benefits—such as use cases in crypto trading, cross-border payments, foreign exchange transactions, and cash management—outweigh any perceived foreign dependence.