Societe Generale Unveils Dollar Stablecoin Amid Looming GENIUS Act Vote

Key Takeaways

• Société Générale plans to launch a new dollar-pegged stablecoin.
• USD CoinVertible (USDCV) will complement the bank’s existing stablecoin offering.
• As U.S. stablecoin legislation gathers steam, more banks are exploring their options in the space.

With major banks increasingly flexing their muscles in the stablecoin arena, Société Générale plans to launch a new dollar-pegged token via its crypto subsidiary, SG-FORGE.

With traditional finance (TradFi) adoption snowballing, Senate Republicans are pushing for a vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act as early as this week.

Societe Generale Doubles Down on Stablecoins

Societe Generale entered the stablecoin market in 2023, launching the euro-denominated EUR CoinVertible (EURCV).

Initially developed for institutional use cases, EURCV recently made its retail debut with a listing on Bitstamp, where it can be swapped for fiat euros and USDt.

Since its launch, EURCV has also expanded across blockchain ecosystems. First issued on Ethereum, the stablecoin is now live on Solana and Stellar.

Société Générale’s latest venture in the space will see the bank issue dollar-pegged USD CoinVertible (USDCV) on Ethereum and Solana, Reuters reported on Tuesday, June 10.

More Banks Embrace Stablecoins

Alongside JPMorgan, Société Générale was an early mover in the stablecoin space. However, other major players have moved to get in on the action in recent months.

In May, the Wall Street Journal reported that some of the largest U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are in preliminary talks to develop a joint stablecoin.

In Europe, Santander is also mulling its euro- and dollar-denominated digital currencies. Meanwhile, Deutsche Bank is exploring options , including issuing stablecoins on its own or as part of a larger industry consortium.

With more banks considering creating digital assets, existing solutions like USDC and USDt face rising competition.

In an interview with CCN, Polygon Labs’ Head of Payments, Aishwary Gupta, noted that banks are still in a “very early exploratory phase.” However, he predicted that as adoption rises, more banks will issue their stablecoins, rather than rely on existing options.

“The reason for this is that there is a big systemic risk these banks would come under,” he said. 

“They are not just moving one million, two million, ten million, or 100 million. What these banks are moving is billions of dollars,” Gupta stressed.

Congress Forges Ahead With Stablecoin Regulation

Banks’ various forays into the stablecoin sector could soon receive a significant boost from the U.S. Senate.

Majority leader John Clune has filed cloture on both the amendment to the GENIUS Act and the full bill, and a vote is scheduled for this week.

Currently, the GENIUS Act could favor bank-issued stablecoins over their fintech peers or give banks a crucial regulatory advantage.

Under the legislation, technology companies like Circle and Tether must obtain a special permit as a “qualified payment stablecoin issuer” (QPSI).

Meanwhile, banks can issue stablecoins under their existing licenses as long as they receive approval from a relevant regulator.