SocGen Introduces Stablecoin On XRP Ledger
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Societe Generale-FORGE (SG-FORGE) has revealed plans to introduce its EURCV stablecoin on the XRP Ledger (XRPL), which was created by Ripple. The company said the move would mark EURCV’s third blockchain launch after Ethereum and a planned deployment on Solana. The launch of EURCV on XRPL is expected to occur in 2025.
According to SG-FORGE, XRPL offers several advantages, including speed, low transaction costs, and scalability. The platform is also optimized for cross-border payments.
SG-FORGE’s Aims To Create Transparent And Secure Digital Assets
Guillaume Chatain, Chief Revenue Officer at SG-FORGE, stated that the blockchain offers a combination of efficiency and cost-effectiveness. He said this aligns with the company’s vision for creating secure and scalable digital assets.
Chatain further explained that the XRP Ledger is an ideal platform to complement the firm’s current deployments because of its speed and cost-efficiency.
SG-FORGE’s EURCV stablecoin is still relatively small, with a market capitalization of €38 million. According to reports, four wallets currently hold 90% of the total EURCV balance, and only one of these wallets has made any transactions so far.
Observers said this announcement is a significant boost to Ripple’s credibility, particularly for XRPL. A few years ago, Ripple’s RippleNet service teamed up with some banks for cross-border payments.
However, those transactions operated on a private blockchain without using XRP, and some banks expressed concerns about being associated with XRP.
Ripple recently acquired Metaco, a custody technology provider. This acquisition brought Ripple several banking clients, but analysts observed that it had minimal direct impact on XRPL until now.
SG-FORGE’s Use Of XRPL May Help EURCV Find A Better Market Fit
SG-FORGE differs from many traditional financial clients of Ripple Custody, as it has a history of working with public blockchains. The company helped the European Investment Bank launch a €100 million digital bond on Ethereum in 2021.
Additionally, SG-FORGE previously worked with MakerDAO, borrowing millions of DAI using a security token backed by Societe Generale.
Unlike Ripple Custody’s traditional finance clients, SG-FORGE is not a bank, allowing it more flexibility in exploring innovative blockchain solutions.
Market analysts suggested that SG-FORGE might be testing XRPL to attract institutional investors, particularly for cross-border payment solutions. They noted that while platforms like BlackRock’s BUIDL recently announced expansions to five new blockchains, they did not include XRPL.
SG-FORGE’s decision to use XRPL may be an attempt to find the right market fit for EURCV, especially given XRPL’s focus on international transactions. Meanwhile, Ledger Insights reported over 20 stablecoins currently being developed by banks and financial institutions globally.
