According to reports, Societe Generale is set to become the first traditional finance (TradFi) bank to introduce a stablecoin and is planning to launch it on Bitstamp
Alisha Dar
Societe Generale becomes the first traditional finance institution to launch its own stablecoin, EUR ConVertible, on Bitstamp, complying with EU's MiCA laws and designed for settling trades involving digital bonds and assets.
The Financial Times has reported that Societe Generale (SocGen), one of the largest banks in France, has become the first traditional finance (TradFi) institution to launch its own stablecoin.
The Euro-pegged digital asset, named EUR ConVertible, has been launched on the Luxembourg-based crypto exchange platform Bitstamp. This move marks the first time a TradFi bank has entered the stablecoin market, which has been dominated by crypto firms such as Tether (USDT) and Circle (USDC).
According to Jean-Marc Stenger, the chief executive of SocGen Forge, the bank's digital assets unit, the stablecoin will comply with the EU's MiCA laws and will be used to settle trades involving digital bonds and assets. Stenger also stated that EUR ConVertible was designed to be compatible with different platforms and financial institutions, and its holders would not face exposure to the bank itself.
Recently, Societe Generale also issued the first-ever digital green bond over the Ethereum (ETH) blockchain to increase transparency and traceability surrounding ESG data.