Important news: Forge has selected Flowdesk as the official marker for their stablecoin denominated in euro.
We underline that, although EURCV is not the first European stablecoin, it enjoys strong institutional support from Société Générale, one of the main financial institutions on the continent. Let’s see all the details below.
The partnership between Flowdesk and Forge for the euro stablecoin
As anticipated, Flowdesk has announced its appointment by Forge of Société Générale (GLE) as the market maker for their innovative euro-denominated stablecoin, EUR CoinVertible (EURCV).
We remind you that market making activity consists in providing liquidity to financial markets, acting as an intermediary that facilitates exchanges between buyers and sellers.
This essential role ensures more efficient and smooth transactions, helping to avoid periods of intense price volatility.
Without the presence of a market maker, finding buyers or sellers for a specific financial instrument at a specific time and price could be complex, causing potential periods of price instability.
Guilhem Chaumont, CEO and co-founder of Flowdesk, stated the following regarding the news:
“Looking to the future and approaching 2024, we foresee a transformative impact in which compliant blockchain operations by institutions will dramatically increase in volume, and this is what we have prepared for since the beginning of Flowdesk.”
As a market maker, Flowdesk will be responsible for providing liquidity for the trading pairs EURCV-EUR and EURCV-USDT on Bitstamp and other platforms.
The company has been selected and authorized by SG-FORGE to negotiate EURCV, thus consolidating its position in the key role within this evolving financial scenario.
EURCV, although not being the first euro-denominated stablecoin, is an innovative initiative supported by a strong institutional backing, thus differentiating itself from previous initiatives such as Circle and Tether’s euro stablecoins, which have recorded more limited trading volumes, according to on-chain data.
Société Générale launches the first green digital bond on the Ethereum blockchain
As we know, during 2023, the interest and adoption of cryptocurrencies and blockchain technology by banks have recorded a significant increase, with a particular emphasis among European financial institutions.
The third French bank, Société Générale, joined this trend yesterday, announcing the launch of its first digital green bond.
This senior preferred unsecured bond, worth 10 million euros with a maturity of three years, has been tokenized as a security asset directly on the Ethereum (ETH) blockchain.
The initiative aims not only to improve the fluidity, transparency, and speed of bond transactions, but also represents a first step towards the use of blockchain technology as a tool for certification and data repository.
This innovative approach also highlights the growing commitment of European banks to harness the potential of cryptocurrencies and blockchain. However, Société Générale is not the only one embracing this evolution.
Already in February 2023, the government of Hong Kong issued its own $100 million tokenized green bonds, highlighting its commitment to enhance digital resources and promote sustainable development through infrastructure and regulation.
Thus, even German banks, in particular Deutsche Bank, with 1.4 billion dollars, have emerged as active players, obtaining relevant government approvals and acting as authorized custodians of cryptocurrencies.
Finally, in some jurisdictions, government institutions like the Swiss city of Lugano are integrating blockchain technologies such as Polygon (MATIC) into their payment applications, highlighting a growing synergy between the public sector and blockchain.
More news for stablecoins: MUFG announces partnership with JPYC
Recently, MUFG, the main Japanese financial institution, has formalized a collaboration with JPYC, the stablecoin tied to the yen, planning to offer new services based on stablecoin, with a focus on cross-border payments.
The partnership involves the integration of JPYC into MUFG’s tokenization platform, Progmat.
The banking giant, together with SBI Holdings, Mizuho Trust and Banking, Sumitomo Mitsui Trust Bank, and NTT DATA Corporation, launched Progmat at the beginning of September to provide an advanced platform for the issuance and management of digital assets, involving over 200 members.
JPYC, as a stablecoin for fund transfers, is seeking alignment with the new regulations on stablecoins in Japan.
Currently, he is trying to obtain a license, but is limited to a maximum amount of remittances of one million yen.
The partnership with MUFG, as a trust bank through Progmat, could facilitate the transition of JPYC to a trust-type stablecoin, removing transaction restrictions.
The future plan involves expanding the partnership to cross-border transfers, with the aim of allowing Japanese users to smoothly convert yen-backed stablecoins into stablecoins in USD.
MUFG has demonstrated a constant commitment to the potential of stablecoins, foreseeing the issuance of XJPY and XUSD in the FX market, contributing to improving transactions in the world of digital assets.