The giant French banking group Societe Generale (EPA:SOGN) is preparing to launch a dollar-backed stablecoin through its cryptocurrency-focused subsidiary, SG-FORGE. This move is a milestone as it becomes the first major European bank to introduce a dollar-linked cryptocurrency in the rapidly growing stablecoin market.
The new cryptocurrency, named 'USD CoinVertible', will operate on the Ethereum and Solana blockchains. SG-FORGE announced on Tuesday that the currency is expected to be available for public trading starting in July. BNY Mellon, a prominent banking and financial services company, will serve as the custodian for the reserves of this new stablecoin, according to Societe Generale.
Prior to this, SG-FORGE had launched a euro-backed stablecoin in 2023. However, this cryptocurrency has not seen widespread adoption, with only 41.8 million euros ($47.62 million) of this cryptocurrency currently in circulation, according to information available on its website.
Stablecoins are a unique type of cryptocurrency, linked to a traditional currency, often the dollar. These digital assets provide individuals with a way to transfer large amounts of money without the need to use traditional banking payment systems.
