Latest news with #SG-FORGE
Business Recorder
4 days ago
- Business
- Business Recorder
Societe Generale becomes first major bank to launch dollar-pegged stablecoin
PARIS: France's Societe Generale said on Tuesday it plans to launch a publicly tradable, dollar-backed stablecoin through its digital asset subsidiary, making it the first major bank to enter the growing market of dollar-pegged cryptocurrencies. The new digital currency, named 'USD CoinVertible', will be issued on both the Ethereum and Solana blockchains, with public trading expected to start in July, SocGen's crypto arm SG-FORGE said in a statement. Stablecoins are a type of cryptocurrency typically pegged to a traditional currency, usually the dollar, allowing people to move large sums of money using blockchain networks instead of traditional banking payment systems. The sector has seen rapid growth, driven by crypto company Tether, which has issued $155 billion of its dollar-pegged tokens. SG-FORGE launched a euro-based stablecoin in 2023, although it has not been widely adopted, with just 41.8 million euros ($47.62 million) in circulation, according to its website. SocGen said its stablecoins are classed as e-money tokens and will be regulated under MiCA, the European Union's landmark crypto regulation adopted in 2023. Tether does not have a licence to operate in the European Union under MiCA. Jean-Marc Stenger, CEO of SG-FORGE, said that there was demand for a regulated dollar-based stablecoin. 'At the moment, there are no other banking-related players in that space … that's definitely the feedback we have from the market, both corporates, financial institutions, but also crypto exchanges,' he said. 'There is a very, very strong need for well-regulated, robust offering in the crypto and stablecoin space'. Stablecoin issuers typically take in dollars from customers and give them the crypto token in return. The issuers profit by investing these dollar holdings into yield-bearing assets such as bonds. BNY will serve as the custodian for SG-FORGE's reserves, which will initially be kept in a cash account, before later being invested into other assets, Stenger said. SG-FORGE said that its token can be used for crypto trading, cross-border payments, foreign exchange transactions and management of collateral and cash, and will be listed on various crypto exchanges, without giving further details. The subsidiary has 'more than 15' crypto exchanges and brokers being onboarded as clients, Stenger added. In the U.S., Congress is poised to pass legislation to create a regulatory framework for stablecoins. Bank of America could launch a stablecoin, its CEO said earlier this year, and some other large banks are considering issuing a joint stablecoin. Tether is the world's largest stablecoin issuer. Its CEO said in a post on X that the company was the seventh biggest buyer of U.S. government debt in 2024, because it holds its dollar reserves in Treasuries. The second-largest issuer, Circle, went public on the U.S. stock market on June 5 and saw its shares soar 48% on Friday. Regulators have long warned that stablecoins could impact market stability by creating connections between mainstream finance and more volatile crypto markets.
Business Times
4 days ago
- Business
- Business Times
Societe Generale becomes first major bank to launch dollar-pegged stablecoin
[PARIS] France's Societe Generale said on Tuesday (Jun 10) it plans to launch a publicly tradable, dollar-backed stablecoin through its digital asset subsidiary, making it the first major bank to enter the growing market of dollar-pegged cryptocurrencies. The new digital currency, named 'USD CoinVertible', will be issued on both the Ethereum and Solana blockchains, with public trading expected to start in July, SocGen's crypto arm SG-FORGE said in a statement on Tuesday. BNY Mellon will serve as the custodian for the stablecoin's reserves, the bank said. Stablecoins are a type of cryptocurrency typically pegged to a traditional currency, usually the dollar, allowing people to move large sums of money using blockchain networks instead of traditional banking payment systems. The sector has seen rapid growth, driven by crypto company Tether, which has issued US$155 billion of its dollar-pegged tokens. SG-FORGE launched a euro-based stablecoin in 2023, although it has not been widely adopted, with just 41.8 million euros (S$61.4 million) in circulation, according to its website. SocGen said its stablecoins are classed as e-money tokens and will be regulated under MiCA, the European Union's landmark crypto regulation adopted in 2023. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Tether does not have a licence to operate in the European Union under MiCA. Jean-Marc Stenger, CEO of SG-FORGE, said that there was demand for a regulated dollar-based stablecoin. 'At the moment, there are no other banking-related players in that space ... that's definitely the feedback we have from the market, both corporates, financial institutions, but also crypto exchanges,' he said. 'There is a very, very strong need for well-regulated, robust offering in the crypto and stablecoin space'. SG-FORGE said that its token can be used for crypto trading, cross-border payments, foreign exchange transactions and management of collateral and cash, and will be listed on various crypto exchanges, without giving further details. The subsidiary has 'more than 15' crypto exchanges and brokers being onboarded as clients, Stenger added. In the US, Congress is poised to pass legislation to create a regulatory framework for stablecoins. Bank of America could launch a stablecoin, its CEO said earlier this year, and some other large banks are considering issuing a joint stablecoin. Tether is the world's largest stablecoin issuer. Its CEO said in a post on X that the company was the seventh-biggest buyer of US government debt in 2024, because it holds its dollar reserves in Treasuries. The second-largest issuer, Circle, went public on the US stock market on June 5 and saw its shares soar 48 per cent on Friday. Regulators have long warned that stablecoins could impact market stability by creating connections between mainstream finance and more volatile crypto markets. REUTERS
Yahoo
4 days ago
- Business
- Yahoo
Societe Generale becomes first major bank to launch dollar-pegged stablecoin
By Elizabeth Howcroft PARIS (Reuters) -France's Societe Generale ( said on Tuesday it plans to launch a publicly tradable, dollar-backed stablecoin through its digital asset subsidiary, making it the first major bank to enter the growing market of dollar-pegged cryptocurrencies. The new digital currency, named "USD CoinVertible", will be issued on both the Ethereum and Solana blockchains, with public trading expected to start in July, SocGen's crypto arm SG-FORGE said in a statement on Tuesday. BNY Mellon will serve as the custodian for the stablecoin's reserves, the bank said. Stablecoins are a type of cryptocurrency typically pegged to a traditional currency, usually the dollar, allowing people to move large sums of money using blockchain networks instead of traditional banking payment systems. The sector has seen rapid growth, driven by crypto company Tether, which has issued $155 billion of its dollar-pegged tokens. SG-FORGE launched a euro-based stablecoin in 2023, although it has not been widely adopted, with just 41.8 million euros ($47.62 million) in circulation, according to its website. SocGen said its stablecoins are classed as e-money tokens and will be regulated under MiCA, the European Union's landmark crypto regulation adopted in 2023. Tether does not have a licence to operate in the European Union under MiCA. Jean-Marc Stenger, CEO of SG-FORGE, said that there was demand for a regulated dollar-based stablecoin. "At the moment, there are no other banking-related players in that space ... that's definitely the feedback we have from the market, both corporates, financial institutions, but also crypto exchanges," he said. "There is a very, very strong need for well-regulated, robust offering in the crypto and stablecoin space". SG-FORGE said that its token can be used for crypto trading, cross-border payments, foreign exchange transactions and management of collateral and cash, and will be listed on various crypto exchanges, without giving further details. The subsidiary has "more than 15" crypto exchanges and brokers being onboarded as clients, Stenger added. In the U.S., Congress is poised to pass legislation to create a regulatory framework for stablecoins. Bank of America could launch a stablecoin, its CEO said earlier this year, and some other large banks are considering issuing a joint stablecoin. Tether is the world's largest stablecoin issuer. Its CEO said in a post on X that the company was the seventh biggest buyer of U.S. government debt in 2024, because it holds its dollar reserves in Treasuries. The second-largest issuer, Circle (CRCL), went public on the U.S. stock market on June 5 and saw its shares soar 48% on Friday. Regulators have long warned that stablecoins could impact market stability by creating connections between mainstream finance and more volatile crypto markets. ($1 = 0.8778 euros)
Time of India
4 days ago
- Business
- Time of India
Societe Generale to launch dollar-pegged stablecoin
French bank Societe Generale will launch a dollar-backed stablecoin via its crypto subsidiary SG-FORGE, becoming the first major European lender to launch a dollar-pegged cryptocurrency in the booming market for stablecoins . The cryptocurrency, called " USD CoinVertible ", will exist on the Ethereum and Solana blockchains and is expected to be publicly tradable from July, SG-FORGE said in a statement on Tuesday. BNY Mellon will be the custodian for its reserves, SocGen said. SocGen's crypto arm had already launched a euro-based stablecoin, in 2023 but it has not been widely adopted, with just 41.8 million euros ($47.62 million) worth of the token in circulation, according to its website. Stablecoins are a type of cryptocurrency pegged to a traditional currency, usually the dollar, allowing people to move large sums of money without using banks' payment transfer systems. They have grown rapidly in recent years, driven by crypto company Tether, which has issued $155 billion of its dollar-pegged token and is the largest stablecoin issuer by far. Live Events SG-FORGE said that its token would be used for crypto trading , cross-border payments, foreign exchange transactions and management of collateral and cash, and will be listed on various crypto exchanges, without giving further details. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories
The Star
4 days ago
- Business
- The Star
Societe Generale to launch dollar-pegged stablecoin
PARIS (Reuters) -French bank Societe Generale will launch a dollar-backed stablecoin via its crypto subsidiary SG-FORGE, becoming the first major European lender to launch a dollar-pegged cryptocurrency in the booming market for stablecoins. The cryptocurrency, called "USD CoinVertible", will exist on the Ethereum and Solana blockchains and is expected to be publicly tradable from July, SG-FORGE said in a statement on Tuesday. (Reporting by Elizabeth Howcroft; Editing by Tommy Reggiori Wilkes)
