French Bank Societe Generale to Launch USD-backed Stablecoin: Why is Stablecoin Market Heating Up?

The crypto arm of one of France’s leading banks, Societe Generale, has launched the USD-pegged stablecoin CoinVertible (USDCV), with an aim to bridge traditional and digital financial ecosystems. The plan follows the successful debut of EUR CoinVertible (EURCV) in December 2023, reinforcing Societe Generale’s strategic pivot toward digital assets.

Issued on the Ethereum and Solana blockchains with the Bank of New York Mellon Corporation (BNY Mellon) as custodian, this launch marks a significant milestone for the global crypto markets. The move marks a major step into the regulated crypto space as the stablecoin market is heating up with various developments taking place in the past few days, with the U.S. discussing the GENIUS Act, a bill that aims to give U.S. dollar-backed stablecoins a regulatory framework. 

As per the official release , USD CoinVertible and EUR CoinVertible are designed to be adopted by a wide range of clients and used for various applications, “including crypto trading and cross-border payments, on-chain settlement, foreign exchange transactions, and collateral and cash management.” 

Moreover, both these stablecoins will be listed on various crypto exchanges and available to institutional, corporate, and retail investors worldwide. The primary launch for USDCV is expected by early July. However, neither USD CoinVertible (USDCV) nor EUR CoinVertible (EURCV) is available to U.S. citizens. 

Why Are Stablecoins in Trend?

The timing of this launch coincides with heightened global interest in stablecoins, driven in part by evolving regulatory landscapes. In the United States, ongoing discussions around a stablecoin bill ( GENIUS Act ) in Congress are influencing international institutions to explore this asset class. 

While no comprehensive legislation has been enacted yet, the U.S. Senate’s recent deliberations highlight that the country could soon have a potential regulatory framework that could spur stablecoin adoption. 

Industry experts note that stablecoins account for nearly 90% of crypto trading volume despite representing just 7% dominance in the crypto market capitalization. This liquidity-driving attribution, combined with regulatory advancements, positions stablecoins as a “killer app” for bridging traditional and digital finance. 

As global institutions like Societe Generale lead the charge, the stablecoin market is heating up, and it is poised to reshape blockchain-based cross-border and retail payments in the years ahead.