Stellar Lumens integration for EURCV stablecoin now endorsed by Societe Generale.
Let's dive into the latest buzz in the crypto world! The prestigious Forge, a subsidiary of Societe Generale and a regulated Digital Asset Service Provider (DASP), has expanded its stablecoin game by adding Stellar to the roster of networks supporting the EUR CoinVertible (EURCV) stablecoin.
Originally launched on Ethereum, this MiCA-compliant "stablecoin" is tailored to suit Traditional Finance (TradFi) folks. The incorporation of Stellar brings a host of perks to the table, including a built-in Decentralized Exchange (DEX) and asset tokenization support. These features will facilitate EURCV's smooth integration into numerous financial applications and services.
The excitement doesn't end there! EURCV holders can revel in the exclusive benefit of direct access to the reserves. The collateralized euros will find a secure home in a third-party managed trust fund. It's important to note that Forge was green-lit as a MiCA-approved issuer, securing a spot alongside other esteemed organizations. Despite Tether, the issuer of the mammoth $141.7 billion USDT, missing out on the list, they had earlier discontinued support for their euro-pegged stablecoin EURT in November.
In the European Union, Tether has redirected its focus, diving into third-party projects such as MiCA-licensed Quantoz Payments and StablR, and expanding its Risk Weighted Assets (RWA) platform, Hadron. Meanwhile, USDC issuer Circle clinched approval to issue stablecoins in the EEA back in July.
According to earlier reports by Kaiko, MiCA-compliant stablecoins are expected to account for a record 91% market share by November 2024. It's a testament to the growing confidence in these regulated and transparent digital assets - a shift that EURCV embodies in spades!
Now, let's delve into what sets EURCV apart from other stablecoins, like Tether's USDT. EURCV boasts full collateralization, regulatory compliance, transparency, and security, owing to its fiat euro backing, European regulations adherence, publicly disclosed collateral, and third-party management of the collateral. Although initially launched on Ethereum, the details about EURCV's support on Stellar are not yet confirmed in the sources at hand. Stay tuned for more updates on this exciting development! pagina2br
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Details on EURCV's Unique Selling Points
- Full Collateralization: EURCV is fully collateralized by fiat euros held in a cash account with Societe Generale, ensuring a 1:1 backing for every token issued and providing stability and trust in the system[1].
- Regulatory Compliance: EURCV is compliant with European regulations, specifically the Markets in Crypto-assets (MiCA) regulation, and is classified as an Electronic-Money Token (EMT). SG-FORGE is licensed as an Electronic Money Institution (EMI) by the French ACPR[2][5].
- Transparency and Security: The collateral composition and valuation of EURCV are publicly disclosed daily, ensuring transparency. The use of a third-party fiduciary to manage the collateral further enhances security and separates the collateral assets from SG-FORGE's general assets[1].
- Blockchain Support: Initially launched on the Ethereum blockchain, EURCV provides the benefits of blockchain technology, such as efficiency and speed. While Stellar has been added to the list of supported networks, it's not explicitly clear whether EURCV will also be available on the Stellar blockchain.
- Accessibility: EURCV is accessible on public blockchains, allowing institutional clients to leverage its benefits. However, it is not available to US persons[2][5].
Comparison with Tether's USDT
- Collateralization: Both EURCV and USDT are collateralized, but EURCV is fully backed by fiat euros in a cash account, whereas USDT is backed by a mix of assets, including commercial papers and other securities.
- Regulatory Environment: EURCV is compliant with specific European regulations, while Tether's USDT has faced regulatory scrutiny and lacks clear regulatory compliance in some jurisdictions.
- Transparency: EURCV's collateral is managed by a third-party fiduciary and disclosed daily, enhancing transparency. Tether faced criticism for lack of transparency in its collateral composition until more recent efforts to improve disclosure.
- Blockchain Support: EURCV is currently supported on Ethereum, whereas USDT is available on multiple blockchains, including Ethereum, TRON, and Solana.
- Accessibility: USDT is widely available globally, including to US persons, whereas EURCV is not available to US persons and is more targeted towards European institutional clients.
The Ethereum-based EUR CoinVertible (EURCV) is poised to disrupt the finance and business landscape, as it caters to Traditional Finance (TradFi) participants with its MiCA-compliant nature. With the addition of Stellar, EURCV gains access to a built-in Decentralized Exchange (DEX) and asset tokenization support, enhancing its integration into various financial applications and services.
Distinguishing EURCV from other stablecoins like Tether's USDT, it boasts full collateralization, regulatory compliance, transparency, and security, all of which contribute to its growing appeal in the technology-driven finance sector. However, details about EURCV's Stellar compatibility are yet to be confirmed.
