Societe Generale–FORGE is a fully integrated and regulated subsidiary of Societe Generale Group, and it is licensed as an investment firm and authorized to provide MiFID2 investment services under the supervision of the Prudential Supervision and Resolution Authority.
The company’s primary goal is to bridge the gap between traditional capital markets and the digital assets ecosystem based on the CAST1 open-source interoperability and securitization framework.
The launch of this new stablecoin precedes upcoming European regulatory changes such as ‘MiCAR 2’ and ‘Pilot Regime.’ The project aims to address clients’ need for a robust settlement asset for on-chain transactions, a solution for intra-day liquidity needs, and on-chain liquidity funding and financing solutions. The stablecoin can also represent a solution for corporate treasury, cash management and cash pooling activities.
Some of the primary characteristics of the CoinVertible stablecoin include a secure legal structure that guarantees the segregation of the collateral assets held to back the value of the stablecoins from the issuer, as well as a stringent and predefined collateral eligibility criterion.
The stablecoin also offers interoperability and compatibility with traditional systems and financial practices. This was achieved through its implementation under the principles of the CAST framework. The product offers daily transparency on EUR CoinVertible amount and collateral positions directly on the SG-FORGE website.
It’s worth noting, however, that access to EUR CoinVertible is limited to investors that have been onboarded by Societe Generale group through its existing compliance procedures. As for the source code for the stablecoin’s smart contract, it will be published under the Apache 2.0 open-source license.
In the company press release, SG-FORGE officials talked about digital assets with stabilisation mechanisms and how they have the potential to increase trust and confidence in the native crypto ecosystem. They also revealed SG-FORGE’s plans to deliver innovative solutions to its clients, either real-money institutions and corporates or entities of the crypto industry, and to facilitate the emergence of new market infrastructures based on blockchain technology.
SG-FORGE aims to facilitate product exposure to the largest number of qualified institutional investors. To this end, the company will work with various digital asset exchanges and trusted third-party platforms to have the EUR CoinVertible stablecoin listed in the following months.
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