By Bitcoinist - 1 year ago - Reading Time: 3 minutes
Euro-Backed Stablecoin Under Development By Societe Generale
A stablecoin pegged to the euro, EUR CoinVertible, is being launched by Societe Generale-Forge (SG-Forge), breaking new ground in the world of cryptocurrency.
This move is set to shake up the digital currency market by offering institutional clients a new way to transact in cryptocurrencies without the volatility often associated with the industry.
With the backing of a well-established banking firm, the EUR CoinVertible aims to provide a safe and reliable means of conducting financial transactions on the blockchain.
SG-Forge’s Latest Launch Bridges Traditional Markets, Crypto Assets
In response to the surging demand for a stable settlement asset for on-chain transactions, SG-Forge has announced its new digital currency, EURCV stablecoin. Developed on the Ethereum blockchain, the new stablecoin aims to serve as a bridge between the traditional capital markets and the digital assets ecosystem.
Restricted to institutional clients who have completed Societe Generale’s Know Your Customer and Anti-Money Laundering procedures, the EURCV stablecoin will be traded under the ticker symbol EURCV.
This fiat-pegged stablecoin has several advantages, including new solutions for corporate treasury, cash management, and cash pooling activities, as well as on-chain liquidity funding and refinancing solutions, according to SG-Forge.
Advantages Of A Fiat-Pegged Stablecoin
One of the most significant advantages of a fiat-pegged stablecoin is their stability. As their value is tied to a fiat currency, such as the US dollar or the euro, their price tends to remain relatively stable, unlike other cryptocurrencies that are subject to frequent price fluctuations.
This stability makes them an attractive option for institutional investors who want to transact in cryptocurrencies without the risks associated with price volatility.
Another advantage of fiat-pegged stablecoins is that they offer a way to transact on the blockchain while avoiding the need to convert back and forth between cryptocurrencies and fiat currencies.
This eliminates the associated costs and time delays, making transactions faster and more cost-effective. Additionally, stablecoins are backed by reserves of the fiat currency to which they are pegged, which provides a level of trust and reliability for investors.
EURCV To Meet EU’s Banking And Regulatory StandardsSG-FORGE, the regulated subsidiary of Societe Generale, has emphasized its commitment to compliance with the European Union’s banking, legal, and regulatory standards with the launch of EURCV stablecoin.
In a white paper detailing the specifics of EURCV, the company stated that it believes regulation will lend legitimacy to innovative distributed technologies and provide consumer protection.
SG-FORGE, the issuer of the stablecoin, will entrust the management of the collateral backing the token to a reputable agent, under a relevant legal framework for fiduciaries based on applicable law. Crucially, the collateral will be legally separated from the SG-FORGE team to ensure transparency and prevent potential conflicts of interest.
In the event that the stability mechanisms are threatened, EURCV holders will be recognized as beneficiaries of the fiduciary and will be able to redeem their collateral. These measures ensure that the stablecoin is backed by trustworthy assets and that users have the ability to access their collateral if needed.
-Featured image from Getty
Original source: Bitcoinist