Societe Generale-Forge Launches “Coinvertible”: the First Institutional Stablecoin Deployed on a Public Blockchain

Societe Generale-Forge Launches “Coinvertible”: the First Institutional Stablecoin Deployed on a Public Blockchain

Societe Generale–FORGE (SG-FORGE), a fully integrated and regulated subsidiary of Societe Generale group dedicated to digital assets, launches the EUR CoinVertible, a digital asset that purports to maintain a stable value (stablecoin). EUR CoinVertible is deployed in Euro denomination on the Ethereum public blockchain (ticker code: EURCV).

This pioneering project complements SG-FORGE’s business offer to institutional clients seeking to benefit from innovative settlement and cash management solutions. It is designed to bridge the gap between traditional capital markets and the digital assets ecosystem based on the CAST[1] open-source interoperability and securitization framework.

It is part of with Societe Generale group’s strategy, developing initiatives in the field of digital assets in a secure and transparent framework for institutional investors, fully in line with banking, legal and regulatory standards.

While the regulatory framework related to digital assets at European level will be modified by the upcoming European digital assets regulations “MiCAR”[2] and “Pilot Regime”, EUR CoinVertible, in accordance with the French legal framework applicable to digital assets, has been designed to address growing client needs for:

  • a robust settlement asset for on-chain transactions,
  • an innovative solution for corporate treasury, cash management and cash pooling activities,
  • on-chain liquidity funding and refinancing solutions,
  • a solution for intra-day liquidity needs (e.g. margin calls).

EUR CoinVertible has been construed as a ‘digital asset’ (“actif numérique” as defined in Article L. 54-10-1 of the French Financial and Monetary Code) designed to fulfill institutional investors’ expectations. Its main characteristics are the following:

  • secure legal structure guaranteeing (i) the complete segregation of the collateral assets held to back the value of the stablecoins from the issuer, (ii) with a direct access given to token-holders on the collateral assets, and (iii) the implementation of business continuity plan mechanisms in case of a market or technological event,
  • stringent and predefined collateral eligibility criteria (minimum rating, liquidity),
  • daily transparency on EUR CoinVertible amount and collateral positions, as well as on the value and composition of the collateral, available on SG-FORGE website,
  • request to assign a credit rating to the EUR CoinVertible made to a leading independent credit rating agency,
  • access to EUR CoinVertible limited to investors onboarded by Societe Generale group through its existing compliance procedures (KYC / AML-CFT, etc.),
  • interoperability and compatibility of the EUR CoinVertible with traditional systems and financial practices thanks to its implementation under the principles of the CAST framework,
  • publication of the source code of the EUR CoinVertible’s smart contract under the Apache 2.0 open source license.

For more information, the full version of EUR CoinVertible’s white paper is available here.

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