Unlike what JPMorgan offers with its JPM Coin, the EUR ConVertible will be available for trading, thus opening up immediate access for a wide range of investors.
Societe Generale, the third-largest bank in France is set to launch its EUR CoinVertible stablecoin on the crypto exchange Bitstamp. The move represents a pioneering effort by the Paris-based bank as it will be the first bank to offer a stablecoin on a cryptocurrency exchange.
For what it’s worth, the bank’s groundbreaking action will cause a major shift in the way traditional financial institutions view stablecoins and the crypto space in general. That is not to mention the widespread attention it will also bring to digital tokens that track hard currency values.
Before now, traditional financial institutions have threaded with caution when it comes to crypto. However, according to the Financial Times, which first broke the news, crypto market enthusiasts now have a reason to believe that there is a growing popularity of stablecoins on a global scale.
Societe Generale to List EUR CoinVertible, Hammers on the Need for A Euro-Denominated Stablecoin
Societe Generale is set to do things a little bit differently with its stablecoin, EUR CoinVertible. That is because this is not the first attempt by a traditional financial institution to launch a stablecoin.
However, as earlier mentioned, Societe Generale intends for its stablecoin to be listed on Bitstamp exchange. This means that unlike what JPMorgan offers with its JPM Coin, the EUR ConVertible will be available for trading, thus opening up immediate access for a wide range of investors.
About the decision to introduce the new stablecoin, Jean-Marc Stenger, the CEO of Societe Generale, notes that the crypto space currently has just a few stablecoins. He then added that about 90% of even the few ones available are predominantly backed by US dollars. So, it is only necessary that a stablecoin denominated in euros comes to play a role, Stenger noted.
Controversy, Regulatory Compliance, What Next?
The efforts of Societe Generale, particularly with its stablecoin, have not come without some negative reactions. Some observers have noted something in the smart contract code for Euro CoinVertible. They claim that the smart contract requires that a transaction be authorized by a centralized registrar before being completed. This, according to keen observers, is a way for the bank to control the stablecoin.
Also, there is concern about whether or not Societe Generale has considered the upcoming MiCA regulation. However, the bank also assures that the EUR Coinvertible is designed to align perfectly with the impending rules.
Without a doubt, the landscape of tokenized assets is evolving and beginning to take up a more defined shape. And Societe Generale may just be set to play a huge role in ensuring that happens.