Societe Generale-Forge elevates its stablecoin to accelerate its distribution and free use

As part of the entry into application of the Regulation on Crypto-asset Markets (MiCA) on June 30, SG–Forge has just obtained “electronic money institution (EME)” approval. This approval issued by the ACPR (Prudential Control and Resolution Authority) opens up prospects for use on a larger scale. 

Jean-Marc Stenger, CEO Societe Generale-FORGE, sheds light on the use of these stablecoins and the impact of changes in the regulations governing them.

What is the usefulness of stablecoins and what is their weight in the crypto market?

Stablecoins are digital assets, deployed on blockchain networks, that are designed to maintain a  stable value per token with the objective to offer an alternative to traditional means of payment. With an overall issuance volume of USD 160 billion, they represent about 7% of the total crypto market capitalization but 90% of the trading volume. Due to their pivotal role in almost every crypto asset transaction, they are critical to crypto asset markets. They also allow the settlement and delivery of financial securities on blockchain (Security tokens), as well as fast cross-border payments with reduced fees.

Why did we need to upgrade them in the context of the European MiCA (Market in Crypto Assets) regulation?

MiCA offers an homogeneous legal framework for crypto-asset markets in the European Union, with issuance and distribution rules very close to those applicable to the financial industry. This allows for stronger consumer protection, and transparency on products as well as safeguards against market manipulation and financial crime.

How does the European MiCA regulation impact the EURCV issued by SG-Forge?

In order to apply the highest standards of transparency and security, as defined by MiCA, which came into force on June 30, 2024 for all stablecoin issuances and offerings within the European Union, we have restructured our stablecoin into an Electronic-Money Token (EMT).

This development will allow for the free movement and wider distribution of our stablecoin. We intends to develop a robust offer for crypto-asset investors, as an alternative to existing stablecoins, while continuing to develop innovative cross-border settlement and payment solutions based on blockchain technology.

Robust and regulated stablecoins are essential for the proper functioning, security and institutionalization of crypto-asset markets. With EUR CoinVertible, and the implementation of the European MiCA regulation, SG-Forge is strengthening its offering to crypto ecosystems while continuing to develop innovative cross-border settlement and payment solutions based on blockchain technology for its corporate and financial institution clients.

What prospects do these developments open up for SG-Forge's business?

Launched in April 2023 on the Ethereum public blockchain and until now strictly restricted to our  institutional clients, our stablevoin has confirmed its interest and the reliability of its use. We have thus enhanced our stablecoin to ensure its capabilities of an open stablecoin: compliance with the MiCA regulation and free transferability, without whitelisting restrictions. These significant changes pave the way for wider use, while maintaining high standards of compliance and security. Investors will be able to consider new use cases for our stablecoin, especially thanks to its integration within decentralized finance (DeFi) ecosystems.

We also announced a new partnership with Wintermute, which joins Flowdesk already authorised as a market maker, to optimise our stablecoin’s liquidity. With this collaboration, EURCV's market depth will be improved, volatility reduced, and trading conditions optimized. This consolidates our stablecoin's position as a robust and stable asset, available preferentially on the partner trading platform Bitstamp.

 

Societe Generale–FORGE (SG– orge) was approved as an investment firm (EI) by the French Prudential Supervision and Resolution Authority (ACPR) in 2021, registered in 2022, and then approved as a digital asset service provider (DASP) by the Autorité des Marchés Financiers (AMF) in 2023.

Click here to learn more about SG-Forge https://www.sgforge.com/ 

N.B.: THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR A PROMOTIONAL DOCUMENT FOR THE SALE OR PLACEMENT OF PRODUCTS BY SOCIETE GENERALE S.A.