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Societe Generale Becomes First Major Bank to Launch Dollar-Pegged Stablecoin

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France’s Societe Generale announced plans to launch “USD CoinVertible,” a dollar-backed stablecoin through its digital asset subsidiary SG-FORGE, marking the first time a major global bank enters the dollar-pegged stablecoin market. The new cryptocurrency will be issued on both the Ethereum and Solana blockchains, with public trading set to commence in July.

Stablecoins, which are cryptocurrencies pegged to traditional currencies such as the U.S. dollar, allow for the movement of significant funds across blockchain networks without relying on conventional banking systems. The sector has rapidly expanded, led by crypto company Tether, which has issued $155 billion worth of its dollar-backed tokens.

SG-FORGE previously launched a euro-backed stablecoin in 2023, but adoption has been limited, with only €41.8 million ($47.6 million) in circulation. Unlike unregulated counterparts, SocGen’s stablecoins will be classified as e-money tokens and regulated under the EU’s Markets in Crypto-Assets Regulation (MiCA), adopted in 2023. Tether, by contrast, does not hold a MiCA license to operate within the EU.

Jean-Marc Stenger, CEO of SG-FORGE, emphasized strong market demand for a regulated dollar-based stablecoin, noting significant interest from corporate clients, financial institutions, and crypto exchanges seeking reliable and compliant offerings. “At the moment, there are no other banking-related players in that space,” Stenger said.

Stablecoin issuers typically hold customer deposits in dollars and invest them into yield-bearing assets such as government bonds for profit. Bank of New York Mellon (BNY) will act as custodian for SG-FORGE’s reserves, which will initially be held in cash before being allocated to other investments.

SG-FORGE’s USD CoinVertible will serve multiple functions including crypto trading, cross-border payments, foreign exchange transactions, and collateral management. While specific exchange listings have not yet been disclosed, the company stated that over 15 crypto exchanges and brokers are onboarding as clients.

In the United States, stablecoin regulation is also gaining momentum, with Congress preparing to adopt new legislation. Bank of America has signaled potential interest in launching its own stablecoin, and other major banks are considering joint initiatives.

Tether remains the world’s largest stablecoin issuer and recently disclosed it has become the seventh largest buyer of U.S. government debt in 2024 through its extensive Treasury holdings. Meanwhile, the second-largest stablecoin issuer, Circle, went public on the U.S. stock market on June 5, with its shares surging 48% shortly after listing.

Despite the rapid growth, regulators continue to caution that stablecoins could pose risks to financial stability by linking traditional finance with the more volatile cryptocurrency markets.

Circle Shares Soar in Landmark NYSE Debut, Signaling Strong Crypto IPO Market

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Circle Internet, the stablecoin issuer behind USDC, delivered a stunning debut on the New York Stock Exchange (NYSE) on Thursday, with its shares more than doubling and igniting fresh momentum for crypto-related initial public offerings (IPOs).

The company’s stock opened at $69 per share, valuing Circle at nearly $18 billion on a fully diluted basis. In volatile trading that triggered multiple halts, shares climbed as high as $103.75 before closing at $83.23, marking a 168% gain from its IPO offer price of $31 per share. Circle and some of its existing investors raised $1.05 billion through the sale of 34 million shares, pricing well above the previously marketed range of $27 to $28.

“This morning we had Circle going public in what I can only characterize as a blowout deal,” said Lynn Martin, president of NYSE Group. The success of Circle’s IPO may open the door for other cryptocurrency companies considering public listings, particularly as regulatory attitudes under the Trump administration appear more favorable to digital assets.

Matt Kennedy, senior strategist at Renaissance Capital, noted that Circle’s IPO sends a broader signal: “The more crypto companies that go public, the easier it will be for future crypto companies.” Legal experts also anticipate a surge of crypto IPOs as the sector continues evolving amid clearer regulatory frameworks.

Circle’s flotation is the most significant crypto listing since Coinbase’s 2021 public debut and marks the first major IPO by a stablecoin issuer. The company previously attempted to go public in 2022 through a $9 billion blank-check deal that ultimately collapsed.

The Trump administration’s lighter regulatory touch has helped boost confidence across the digital asset sector. Many companies have recently begun adding cryptocurrencies to their balance sheets, betting on rising token prices and expanded use cases. Ross Carmel, a partner at Sichenzia Ross Ference Carmel, predicted that as regulations solidify, “there will be a flood of crypto and crypto-related IPOs.”

Beyond its IPO success, Circle’s listing is a milestone for the broader stablecoin market. The company’s dollar-pegged USDC stablecoin is the second-largest globally after Tether, and its newer euro-denominated EURC is also gaining traction. CEO Jeremy Allaire emphasized Circle’s innovation push, including the launch of Circle Payments Network, which allows for real-time, cross-border settlements using USDC.

Stablecoins, once primarily used to facilitate cryptocurrency trading, are increasingly being adopted for everyday digital payments. Wall Street analysts believe stablecoins may soon become one of the most transformative forces in finance. “People now clearly believe that this has the potential to do to the financial system what the internet’s done to so many other significant industries,” said Allaire.

Founded in 2013 by Allaire and Sean Neville, Circle’s rapid ascent highlights how mainstream adoption of stablecoins is accelerating. As Congress debates stablecoin-specific legislation, the IPO’s success could further validate the sector’s role in reshaping global payments infrastructure.

Hong Kong Passes Stablecoin Bill, Paving Way for Regulated Digital Currency Ecosystem

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Hong Kong has taken a major step toward becoming a global hub for digital assets, as its legislature on Wednesday passed a new stablecoin bill that establishes a licensing framework for fiat-referenced stablecoin issuers. The legislation marks a critical move toward the potential issuance of Hong Kong’s own regulated stablecoin.

Under the new law, any entity issuing stablecoins in Hong Kong — or even outside the city if the stablecoins are backed by Hong Kong dollars — must now obtain a license from the Hong Kong Monetary Authority (HKMA). The regulation outlines strict criteria for reserve asset management, redemption rights, and risk oversight, aiming to ensure investor protection and financial stability.

“This ordinance adheres to the ‘same activity, same risks, same regulation’ principle, with a focus on a risk-based approach to promote a robust regulatory environment,” said Christopher Hui, Secretary for Financial Services and the Treasury.

The move is part of Hong Kong’s broader strategy to position itself as a competitive player in the digital asset space, especially as global regulatory scrutiny on stablecoins continues to rise. Stablecoins, typically pegged to fiat currencies like the U.S. dollar, are widely used in crypto markets for transferring value between digital assets.

The HKMA has already launched a sandbox program for stablecoin issuers, and three participants are currently testing issuance models under regulatory supervision.

The new law is expected to take effect within the year, giving Hong Kong one of the most comprehensive and forward-looking stablecoin regimes in Asia, potentially attracting global fintech players and blockchain startups.