Synopsis– Societe Generale’s digital asset subsidiary, SG-FORGE, has introduced its euro and dollar stablecoins on leading Ethereum-based decentralized finance (DeFi) platforms Uniswap and Morpho. This move allows users around the world to lend, borrow, and trade these bank-regulated tokens 24/7 using smart contracts that replace traditional intermediaries.
Lending and Borrowing with Stablecoins
On the Morpho platform, users can lend and borrow SG-FORGE’s stablecoins EURCV and USDCV against popular cryptocurrencies such as Bitcoin and Ethereum. They can also use tokenized money market funds backed by US and Eurozone Treasury Bills as collateral. Asset management firm MEV Capital oversees the vaults, setting lending rules and managing any defaults to keep the system secure.
This lending market offers regulated, institutional-grade options, bridging traditional finance with decentralized blockchain protocols. The stablecoins are fully backed by segregated fiat reserves, complying with European regulations under the Markets in Crypto-Assets (MiCA) framework.
Spot Trading and Liquidity
Simultaneously, the bank’s stablecoins are now available for spot trading on Uniswap’s decentralized exchange. Market maker Flowdesk provides liquidity to facilitate smooth swapping of EURCV and USDCV against tokens like Ethereum without relying on centralized exchanges. This open market access allows traders and investors to move stablecoins freely at any time.
Though the market caps of EURCV and USDCV $66 million and $32.2 million respectively are small compared to major players like Tether’s USDT, their integration into DeFi marks a growing acceptance of regulated stablecoins by institutional users.
Also read: Stocks vs Bitcoin: Who Will Outperform in the Next 50 Years?
Security and Regulatory Compliance
SG-FORGE manages its stablecoins with strong security measures, including audits by expert firms and the use of Chainlink oracles for price feeds. Both EURCV and USDCV maintain a strict 1:1 peg to their respective fiat currencies and are issued as Electronic Money Tokens (EMTs) under MiCA rules. This guarantees redeemability, transparency, and AML compliance.
By aligning with French and European regulations, SG-FORGE positions these stablecoins as trusted alternatives to unregulated competitors, attracting users seeking security and regulatory certainty in DeFi.
Implications for Finance and Future Outlook
This deployment signifies a key step in merging traditional banking with decentralized finance. Société Générale, a leading European bank, pioneers regulated stablecoins directly in DeFi, opening new use cases for cross-border payments, yield generation, and collateralized lending.
CEO Jean-Marc Stenger describes this move as the next natural phase in stablecoin growth. With plans to onboard more platforms and increase types of acceptable collateral, SG-FORGE aims to expand adoption steadily. This initiative also sets a precedent for other large banks in Europe that may follow suit.
Written By Fazal Ul Vahab C H
