Breaking: $40B Bank To Launch Dollar Backed Stablecoin On Ethereum And Solana
Highlights
- Société Générale's crypto arm is cantering toward the launch of a dollar-backed stablecoin on Ethereum.
- The crypto unit has hinted at a further expansion to the Solana blockchain.
- A wave of financial institutions are dabbling in stablecoins as the regulatory haze clears on both sides of the Atlantic.
EthereSociété Générale’s cryptocurrency division SG Forge is deepening its footprint in digital assets with the launch of a US dollar-backed stablecoin. The French banking heavyweight is tapping Ethereum for the stablecoin rollout with further plans to extend to Solana.
Société Générale Eyes Dollar Backed Stablecoin Rollout On Ethereum
France-based Société Générale has its sights on the launch of a USD-based stablecoin on the Ethereum blockchain. According to multiple reports, the French banking giant is coasting toward a dollar-backed stablecoin in the coming weeks, leaning on Ethereum after a streak of stablecoin rollouts.
SG Forge, Société Générale’s crypto unit, is spearheading the launch of the new dollar-backed stablecoin. The incoming stablecoin will debut on Ethereum first, but insiders say the offering will extend to the Solana blockchain.
For now, a clear timeline for the stablecoin launch is still under wraps, but the report sheds light on key details. Firstly, SG Forge’s dollar-backed stablecoin will only be available for institutional use rather than for retail application. For Société Générale, the long-term plan is to take the lead in the EU for dollar stablecoins, building on a gap in the market.
Legal clarity from the EU’s Markets in Crypto Assets (MiCA) regulation is luring traditional financial institutions to explore stablecoins. Banks are keen to grab a portion of the market share from crypto native companies like Tether, Circle, and Ripple.
This is not the bank’s first rodeo with stablecoins, as Société Générale has previously launched an euro-backed stablecoin in 2023. Société Générale’s Ethereum stablecoin offering comes as the US Senate advances the GENIUS Act after a prolonged political row
Stablecoin Interest Surges To All-Time High
The global stablecoin market is heating to a boil with pioneers angling to consolidate their positions and new entrants keen to snag a slice of the market. Mastercard has launched a stablecoin payment card service through a partnership with MoonPay.
Meta is also eyeing a return to cryptocurrencies via a stablecoin strategy, while Visa and Stripe are keen on extending their stablecoin streaks.
Among crypto-native players, competition for places has spiked with WLFI tapping Chainlink and Ethereum to secure its USD1 stablecoin transfers. Ripple, Circle, and Tether are hurtling toward regulatory compliance ahead of the incoming GENIUS Act.
Ethereum and Solana are attracting institutional interest among entities keen on rolling out their stablecoin offerings. The Trump-backed WLFI has turned to Ethereum to launch its USD1 stablecoin, with USDC and USDT leaning on the blockchain.
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