On Tuesday, The Big Whale reported that SG Forge, a department under the umbrella of Société Générale, which focuses on encrypted money and block chains, was about to launch a US dollar-backed stabilization currency in the Ether. This will make the Banque français pour le développement the world ' s first international banking group to issue a dollar-stable currency on a public block chain. After the initial release, it was reported that SG Forge also planned to extend the stabilization currency to other networks, including Solana.
Currently, there are no major global banking blocs that widely issue dollar-stable currency on the public block chain. Although Chase Morgan has introduced a United States dollar stabilization currency called JPM Coin, it is limited to the private licensed block chain used within the bank ' s clients and partners.
The upcoming introduction of the United States dollar stabilization currency is the second such currency since SG Forge launched the euro-denominated coin EUR CoinVertible (EURCV) in April 2023. The EURCV is intended to serve institutional clients and to provide the basis for SG Forge ' s approach to regulated digital assets, but its focus is on the euro.
With the introduction of the new United States dollar, SG Forge is entering a larger and more competitive market. The stabilization currency is aimed first and foremost at institutional investors and is designed to meet the growing demand for safe and regulated dollar liquidity within the EU. Under EU law, SG Forge has an electronic currency licence that enables it to legally operate such products within the EU, similar to that of USDC issuer Circe.
As the stable currency market continues to flourish, the total market value of dollar-linked coins is close to $250 billion, compared to the fact that the euro-stable currency remains a small area, with a circulation of only 300 million euros, of which 40 million euros belong to the EURCV of SG Forge. Despite the success of EURCV, banks face challenges in expanding the use of the euro stabilization currency, especially under the EU Code for the Regulation of Encrypted Asset Markets (MiCA).
In contrast, the United States dollar stable currency market has undergone rapid innovation, with non-bank participants, such as Circle and Tether, taking a leading global position. SG Forge ' s accession introduced a new dynamic: a regulated European banking institution offered a qualified alternative to the United States financial technology distributor.