On Tuesday, September 24, French bank Société Générale, through its cryptocurrency arm, SG Forge, signed an agreement with Bitpanda, an Austrian cryptocurrency trading platform, to launch the EUR CoinVertible stablecoin.
This stablecoin, managed by the French entity, will comply with the European Union’s MiCA regulations, making it the first regulated stablecoin of its kind in Europe.
The objective of this association is increase accessibility and adoption of digital assets in Europe, according to the companies. With more than 5 million users, Bitpanda will allow its customer base to acquire the new stablecoinEUR CoinVertible.
This coin is designed to offer stability in cryptocurrency transactions, with its value pegged to the euro and backed by deposits exceeding 33 million euros. The currency is built on the Ethereum blockchain.facilitating its operation from various digital wallets, exchanges and protocols.
Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, commented that stablecoins “are essential for the future of digital assets in Europe.” “The landscape is changing and integration with traditional finance is increasing; fully regulated stablecoins are the key to making this possible,” he added.
Bitpanda has already established significant collaborations in the European financial sector. In June this year, it joined forces with Deutsche Bank to facilitate the purchase and sale of cryptocurrencies in Germanywhich shows a growing trend towards the integration of cryptoasset services with traditional financial institutions.
Société Générale, with 25 million clients in over 65 countries, brings considerable weight to this alliance. The involvement of one of the largest European banks in the cryptoasset market not only legitimises this field, but also points to a direction that others could follow. Indeed, other European banks, such as Deutsche Bank, are exploring or have already started projects with stablecoins, evidencing a growing interest in this niche.
EUR CoinVertible’s entry into the market aligns with a broader trend in Europe towards the adoption of regulated crypto assets, promising stability and confidence for investors. With MiCA regulations as its backing, this partnership between Société Générale and Bitpanda could set a precedent for the integration of traditional finance with Bitcoin technology in the region.
The MiCA law, approved by the European Parliament in April 2023, will be fully implemented in December 2024. This regulation seeks to integrate blockchain technology and virtual assets into the EU legal framework, protecting users and investors. The importance of MiCA lies in its ability to standardize and protect the cryptoasset market, providing a clear framework for its operation.
This article was created using artificial intelligence and edited by a human on the editorial staff.
