Société Générale and Bank of America: The rise of stables in traditional finance

In a context where digital currencies and stablecoins are becoming increasingly important in the financial world, the Société Générale, through its subsidiary SG-FORGE, continues its development by deploying the EUR CoinVertible stablecoin (EURCV) on the Stellar blockchain. This movement is part of a strategy to modernize banking services while responding to new demands for fluidity and security in financial transactions. The initiative marks a turning point in deepening the links between traditional finance and blockchain technologies.

FACTS

• SG-FORGE, the blockchain subsidiary of Société Générale, launched the EUR CoinVertible stablecoin (EURCV), backed by the euro, and deployed on the Stellar blockchain. This initiative aims to improve the speed and security of cross-border payments, while allowing for greater fluidity in the money transfer sector.
• EURCV is designed to comply with European regulations, including the MiCA Regulation, which requires greater transparency and secure reserve management. This provides users with increased confidence in stability.
• SG-FORGE does not stop at the issue of stablecoin; It aims to create a wider ecosystem around the tokenization of financial assets, the use of stablecoins in decentralized finance (DeFi) and their application in sectors such as e-commerce and logistics.

ISSUES

• Addressing speed and security needs in cross-border payments: With EURCV, Société Générale aims to reduce the costs of international transactions while ensuring their speed and security. This stablecoin, combined with the Stellar blockchain, allows almost instant execution of payments, and at low cost, a major asset for global companies.
• Positioning on the regulated stablecoins market: One of the important issues for SG-FORGE is to offer a regulated stablecoin, in line with MiCA's requirements, which distinguishes it from the many unregulated alternatives on the market. This regulatory framework reassures financial actors and businesses in search of reliable and secure solutions.
• Promoting interoperability between traditional finance and DeFi: By creating an ecosystem around the EURCV, SG-FORGE opens the way to new possibilities for interconnection between traditional finance and DeFi. This open-source approach allows companies to develop a variety of applications, and promotes access to both private and professional investors.

PERSPECTIVE

• In a logic similar to that of Société Générale, Bank of America (BofA) expressed its intention to launch a dollar-backed stablecoin, but awaits clarification of regulations in the United States to move forward. BofA CEO Brian Moynihan said the bank would be ready to enter the sector as soon as the stablecoins legislation was in place.
• Just as SG-FORGE seeks to meet the demand for faster and more secure payment solutions, BofA sees stablecoin as a way to modernize its financial services. Although the regulation differs between Europe and the United States, the two institutions are embarking on a common path of integrating stables into their services and developing a more modern and interconnected financial ecosystem.

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