In a bold stride into the burgeoning stablecoin landscape, Société Générale’s crypto division, SG Forge, is reportedly gearing up to launch a dollar-backed stablecoin on the Ethereum blockchain. This move positions SG Forge as the first major global banking entity to release a public stablecoin pegged to the U.S. dollar, setting a precedent in the financial industry. The launch is anticipated in June 2025, according to French publication The Big Whale, marking a significant expansion for SG Forge since its euro stablecoin debut two years ago.
A New Player in the Stablecoin Arena
SG Forge’s new dollar stablecoin will initially cater to institutional investors, leveraging its e-money license to operate across the European Union. The token will be publicly accessible on Ethereum, with plans to extend its reach to Solana. This initiative underscores the increasing traction of stablecoins in the financial sector—a trend driven by the quest for seamless, cross-border transactions and the burgeoning demand for decentralized finance (DeFi) solutions. As explored in our recent coverage of Visa and Baanx’s launch of USDC stablecoin payment cards, the integration of stablecoins into mainstream financial services is accelerating.
Ben Reynolds, managing director of stablecoin at BitGo, observes that traditional banks are venturing into stablecoins to keep pace with crypto-native competitors. “Banks see stablecoins not as a threat but as an opportunity to harness blockchain technology for mainstream finance,” Reynolds commented, capturing the essence of this strategic pivot.
Navigating a Crowded Market
SG Forge’s entry into the dollar stablecoin market comes amid stiff competition. Dominated by giants like Circle’s USDC and Tether’s USDT, which command market capitalizations of $60.6 billion and $151.6 billion respectively, the landscape is anything but sparse. Notably, SG Forge’s euro-denominated stablecoin, EURCV, trails behind with a market cap of approximately $46.5 million, dwarfed by Circle’s EURC at $237 million.
Despite these challenges, SG Forge’s strategic positioning could unlock new avenues in the stablecoin realm. PayPal’s crypto chief, Jose Fernandez da Ponte, articulated this sentiment at the recent Consensus 2025 conference in Toronto, emphasizing that banks are crucial to realizing the full potential of stablecoins. “Their infrastructure and regulatory compliance can bring stability and trust to the ecosystem,” da Ponte noted, highlighting the symbiosis between traditional and digital finance.
Shifting Dynamics and Future Prospects
The launch of SG Forge’s dollar stablecoin coincides with a broader trend of institutional and governmental entities embracing digital currencies. World Liberty Financial, backed by the Trump family, recently rolled out its USD1 stablecoin, which facilitated a $2 billion transaction with Binance. Such developments suggest a growing acceptance and integration of stablecoins into high-stakes financial operations. For a deeper dive into the competitive landscape, see our coverage of Tether’s U.S.-focused stablecoin plans.
Yet, questions linger about the long-term viability and regulatory challenges that stablecoins might face. As the market matures, the role of regulatory bodies in shaping the future of these digital assets remains uncertain. Will SG Forge’s entry catalyze a shift in regulatory frameworks, or will it navigate existing paradigms with innovative compliance strategies?
In the coming months, all eyes will be on SG Forge as it navigates the launch of its dollar-pegged stablecoin. As the first global bank to make such a move, its success—or lack thereof—could influence the trajectory of stablecoins in traditional finance. The implications are significant, and the financial world will be watching closely as SG Forge steps into this new chapter.
Source
This article is based on: SocGen’s Crypto Arm to Launch Dollar Denominated Stablecoin on Ethereum, Reports Say
Further Reading
Deepen your understanding with these related articles:
- U.S. Senate Moves Toward Action on Stablecoin Bill
- SEC Ditches PayPal’s PYUSD Probe, Removing Key Regulatory Hurdle for Its Stablecoin
- Ripple Offered $4B-$5B for Stablecoin Issuer Circle: Bloomberg
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
