Traditional banks are developing euro-denominated stablecoins following the discontinuation of Tether's EURt token due to new MiCA regulations in Europe. This provides an opportunity for traditional banks to fill the stablecoin market niche.
Societe Generale-Forge at the Vanguard
Societe Generale-Forge (SG-Forge) has taken the lead by issuing its euro-backed stablecoin EURCV, now available to the public. This move demonstrates the bank's commitment to capturing a significant share of the stablecoin market. SG-Forge's CEO Jean-Marc Stenger stated he is in negotiations with several banks to explore partnerships in stablecoin technology.
European Banks Expand Stablecoin Initiatives
Besides Societe Generale, banks such as Revolut, Oddo BHF, and BBVA are exploring their own euro-denominated stablecoins. AllUnity also plans to release a stablecoin in 2025, leveraging MiCA's clear regulatory framework. MiCA has simplified compliance for stablecoin issuance, fostering competition in the European market. US banks remain cautious due to regulatory ambiguities, but there is an expected surge in activity once guidelines are formalized.
Global Banks and Visa Join the Stablecoin Race
The stablecoin market is attracting global players such as Visa, which has launched a tokenization network for stablecoin issuance. BBVA is among the banks piloting Visa’s technology, with several institutions in Brazil, Singapore, and Hong Kong showing interest. Standard Chartered has partnered with Animoca Brands and Hong Kong Telecommunications to issue HKD-denominated stablecoins. Despite momentum, stablecoins face hurdles like liquidity risks and competition from central bank digital currencies.
Banks are actively developing the stablecoin market, recognizing the opportunity to modernize financial systems despite existing challenges.
