Societe General, also known as SocGen, marks an important milestone as the first company to obtain a crypto license in France.
The company’s crypto division, SG Forge, received the green light for a diverse range of services on 18 July. See below for all the details.
Summary
A new chapter in crypto integration for Societe General in France
As anticipated, on 18 July, FinServ’s crypto division, SG Forge, received a license to expand its services.Â
The French financial market regulator, Autorité des Marchés Financiers, has officially authorized SG Forge to provide custody services for digital assets.
In addition to this, it is now also authorized to facilitate the purchase and sale of cryptocurrencies and other digital assets, as well as to “receive and transmit” third-party crypto orders.
This represents further progress in the cryptocurrency field for Societe Generale, as in April 2023 their SG Forge division had successfully launched a euro-pegged stablecoin based on Ethereum‘s public blockchain.Â
This initiative had earned them the title of the “first” institutional stablecoin to be distributed on a public network. By obtaining this license, Societe Generale becomes the only licensed Digital Services Asset Provider (DSAP) in France.
However, there are other major companies registered with the AMF, the French regulatory authority, that have not yet obtained a similar license.
In the second quarter of 2022, for instance, Binance received approval from the AMF to operate as a virtual asset service provider, allowing them to store digital assets, facilitate the buying, selling, and trading of those assets, and operate a trading platform.
Appetite for digital asset-related products in France still appears to be relatively low, with inflows remaining unchanged over the past week.
While on a monthly and YTD (Year-To-Date) level, the country has seen positive flows, the numbers have not been significant, with an increase of only $0.1 million and $1 million respectively.
In contrast, in the United States, cryptocurrency-related inflows showed a significant increase, with $165 million and $394 million in monthly and YTD flows, respectively.
Societe General’s Ethereum-based Euro stablecoin
As mentioned above, Societe Generale recently launched a euro-pegged stablecoin.
The company’s digital asset wing, SG Forge, announced the introduction of the asset called “EUR CoinVertible,” which will maintain a stable value and will be identified with the ticker code: EURCV.
According to SG Forge’s announcement, this is the first institutional stablecoin to be distributed on a public network, as it will be denominated in Euros and based on Ethereum’s public blockchain.
The goal of the stablecoin is to facilitate secure and efficient on-chain transactions by providing on-chain liquidity funding and refinancing solutions.
In addition, it is considered an “innovative solution” for corporate treasury, cash management and cash pooling activities. EURCV’s offering has been reserved for institutional clients, helping to bridge the gap between traditional capital markets and digital assets.
SG Forge CEO Jean-Marc Stenger emphasized the importance of digital assets with stabilizing mechanisms, such as stablecoins, built on a solid banking structure, as they help build trust in the native crypto ecosystem.
Regarding this new development, Jean-Marc Stenger added that the issuance of EUR CoinVertible marks a significant step in Société Générale-FORGE’s roadmap as it aims to provide innovative solutions to its clients, including institutions and companies operating in both the traditional and cryptocurrency sectors.
It also aims to foster the emergence of new market infrastructures based on blockchain technology.
Societe General’s stablecoin: expansion on Global Platforms and Verification from PwC
Societe Generale (SocGen) has planned to list its stablecoin on several digital asset exchanges and third-party platforms in order to offer exposure to the product to “as many qualified institutional investors as possible.”
This effort aims to get the EUR CoinVertible stablecoin listed and is expected to bear fruit in the coming months. In addition, the company has had the project’s smart contract verified by PwC, one of the Big 4 accounting firms.
Not only SocGen, but other global companies are also developing similar projects. One example is National Australia Bank, which has created its own stablecoin called AUDN. This stablecoin will allow the bank’s customers to settle transactions using blockchain technology in real time, using Australian dollars.
National Australia Bank has planned to launch the stablecoin by mid-year to facilitate transactions. The asset will be backed entirely by Australian dollars with a one-to-one parity ratio.
The stablecoin will be hosted on the Ethereum and Algorand blockchains. These efforts demonstrate how an increasing number of financial institutions are exploring and adopting the use of stablecoins to improve operations and leverage the potential of blockchain technology.
