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