Société Générale's Crypto Arm SG Forge Will Soon Launch a Dollar-Backed Stablecoin on Ethereum

SG Forge, the crypto and blockchain-dedicated arm of Société Générale, one of Europe's largest financial institutions, will soon launch a dollar-backed stablecoin on Ethereum

Key Takeaways:

* SG Forge, the crypto and blockchain-dedicated arm of Société Générale, will soon launch a dollar-backed stablecoin on Ethereum.

* The move would make Société Générale the first global banking group to issue a dollar stablecoin on a public blockchain.

* SG Forge also plans to expand the stablecoin to other networks, including Solana, after the initial launch.

* The upcoming launch will be SG Forge’s second stablecoin initiative.

* The initiative aims to address growing demand in the European Union for secure, regulated access to dollar liquidity in tokenized form.

Europe’s largest financial institutions are venturing deeper into the cryptocurrency domain. SG Forge, the crypto and blockchain-dedicated arm of Société Générale (OTC:SCGLY), is preparing to launch a dollar-backed stablecoin on Ethereum, multiple sources have revealed to The Big Whale.

This development marks a significant milestone as no major global banking group has yet widely issued a US dollar stablecoin on a public blockchain. While JPMorgan Chase (NYSE:JPM) has launched JPM Coin, a dollar stablecoin, it operates on a private, permissioned blockchain and is currently restricted to internal use by JPMorgan’s clients and partners.

This new initiative from SG Forge aims to address growing demand in the European Union for secure, regulated access to dollar liquidity in tokenized form. SG Forge’s e-money license under EU law, similar to that held by Circle, the issuer of USDC, allows it to operate such a product legally within the bloc.

The launch comes amid a booming stablecoin market, with dollar-pegged tokens commanding a combined market cap of nearly $250 billion. In comparison, euro stablecoins remain a niche segment, with only €300 million in circulation—€40 million of which belongs to SG Forge’s EURCV.

EURCV, launched in April 2023, is a euro-denominated token targeted at institutional clients. It was part of SG Forge’s strategy to build out its own regulated digital assets offering. While a success, the bank has faced challenges scaling euro stablecoin adoption, especially under the EU’s Markets in Crypto-Assets Regulation (MiCA). These rules, while offering legal clarity, impose stringent requirements on issuers, including high reserve thresholds and licensing hurdles.

In contrast, the dollar stablecoin market has seen rapid innovation, with non-bank players like Circle and Tether dominating globally. SG Forge’s entry will introduce a new dynamic: a regulated, European banking institution offering a compliant alternative to US fintech issuers.