Euro-pegged Stablecoin From Societe Generale in the Works
A “reputable agent” separate from the bank’s crypto team will manage the stablecoin’s collateral
Kenneth Ip/Shutterstock modified by Blockworks
Societe Generale’s cryptocurrency team FORGE has announced plans for a euro-pegged stablecoin, EUR CoinVertible (EURCV), on the Ethereum blockchain.
The project is designed to offer institutional investors a different way to manage their cash flow and bridge any gaps between traditional markets and the emerging digital asset class.
EURCV will comply with the European Union‘s banking, legal and regulatory standards.
“SG-FORGE believes that regulation will bring legitimacy to innovative distributed technologies and will provide consumer protection. We also believe that regulation will not stifle digital innovation and disruptive ideas,” the company wrote in a white paper outlining the details of EURVC.
SG-FORGE would be the issuer of the stablecoin, and the collateral that backs the token will be managed by a “reputable agent, under a relevant legal framework for fiduciaries based on applicable law.”
Importantly, the collateral will be legally separated from the SG-FORGE team.
In the case that the stability mechanisms are threatened, EURVC holders will be recognized as beneficiaries of the fiduciary and will have the ability to redeem their collateral.
“Stablecoin holders will still be entitled to full conversion of their position in the occurrence of events that would prevent the public Ethereum blockchain from working properly,” the white paper said.
“In other words, our legal structure will protect our clients from technological failures on blockchain in a manner that does not exist in the market today,” the document highlighted.
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