Societe Generale's EURCV stablecoin paves the way for environmentally conscious projects through its digital green bond.
Societe Generale, the French multinational financial conglomerate, has marked a significant milestone by issuing its inaugural digital green bond on the Ethereum (ETH) blockchain. Valued at nearly $11 million, these senior preferred unsecured bonds boast a three-year maturity. The bank revealed that AXA Investment Managers and Generali Investments fully subscribed to the associated security tokens through a private placement.
Notably, AXA Investment acquired €5 million worth of Societe Generale's euro-denominated ERC-20 stablecoin, EUR CoinVertible (EURCV). The bank intends to utilize the funds for environmentally beneficial projects, emphasizing renewable energy and low-carbon transportation initiatives.
The creation of EURCV stablecoin was unveiled by Societe Generale in April 2023, with the aim of bridging the gap between traditional capital markets and the digital asset ecosystem. However, the announcement faced skepticism from Stasis, the firm behind the euro-pegged stablecoin EURS. Stasis raised concerns about potential risks and highlighted the "single point of failure" associated with stablecoins issued by commercial banks. Other analysts also questioned Societe Generale's crypto venture, emphasizing the reliance of EURCV's smart contract on a centralized registrar, likely controlled by the bank.
In April, Societe Generale's crypto division secured a license in France, further cementing the bank's commitment to exploring and integrating digital assets within its operations.
