Societe Generale’s crypto division launches euro stablecoin amidst criticism from Stasis CEO
STASIS CEO comments on the launch of Societe Generale’s competing stablecoin EUR CoinVertible, questioning its viability due to the “single point of failure” problem.
Societe Generale’s Crypto Division, SG-FORGE, has announced the launch of EUR CoinVertible, a euro-denominated stablecoin, which aims to bridge the gap between traditional capital markets and the digital assets ecosystem.
However, the announcement has been met with skepticism from STASIS CEO, who highlighted potential risks and the “single point of failure” problem associated with commercial bank-issued stablecoins.
The EUR CoinVertible is designed to address growing client needs for on-chain transactions, corporate treasury, cash management, cash pooling activities, and intraday liquidity needs. It is built on the ethereum (ETH) public blockchain and is compliant with the French legal framework for digital assets.
Its features include a secure legal structure, stringent collateral eligibility criteria, daily transparency on the amount and collateral positions, and interoperability with traditional systems and financial practices.
STASIS CEO, issuer of the EURS stablecoin, commented on the launch, stating that commercial bank-issued stablecoins will never achieve product-market fit due to the “single point of failure” problem. He cited the EURB by EuroGermany’s Bankhaus von der Heydt as another example of the potential failure of such attempts.
According to the STASIS CEO, the strength of stablecoins lies in isolating users from the risk of one particular commercial bank, with a clearing house in the “unsinkable” counterparty—the Central Bank.
Despite these concerns, Societe Generale–FORGE remains confident in its new stablecoin.
“Digital assets with stabilization mechanisms—i.e., stablecoins—built under a robust banking-grade structure will be a key element to increase trust and confidence in the native crypto ecosystem.”Jean-Marc Stenger, CEO at SG-FORGE.
It remains to be seen whether the EUR CoinVertible will overcome the challenges and skepticism voiced by the STASIS CEO. As the stablecoin landscape continues to evolve, market participants must carefully assess the risks and potential benefits associated with each offering.