SG FORGE developed a crypto token pegged to the euro, meaning 1 EURCV is expected to always equal 1 EUR. The stablecoin is part of the CoinVertible blockchain project, designed to develop and support euro-backed digital assets. EURCV runs on Ethereum, allowing it to take advantage of the network's decentralized protocols and smart contracts. SG FORGE intended the token to link the digital markets ecosystem with the conventional capital markets. EUR CoinVertible only caters to institutional investors that must meet KYC and AML requirements.
A Bit About EUR CoinVertible
It's a crypto token that maintains a consistent value over time, relative to a reference asset. Hence, its worth doesn't fluctuate with shifting market trends. It maintains its purchasing power. EURCV's value is tied to the euro. The CoinVertible blockchain leverages advanced cryptographic techniques to maintain the coin's stability.
Running on Ethereum provides the token with specific advantages. Users can capitalize on the system's speed and security. However, only whitelisted Ethereum addresses can exchange crypto assets for the EUR CoinVertible stablecoin. After the latest update, whitelisted addresses can transfer tokens directly without needing approval from SG FORGE. EURCV is classified as an e-money token.
MiCA-approved institutional stablecoin in Euro!CryptoLists.com
Société Générale - FORGE created the EUR CoinVertible token to respond to the growing demand for a strong, transparent digital asset for on-chain transactions among institutional investors. The stablecoin aims to facilitate on-chain liquidity funding. Full collateralization provides asset holders with some assurances.
In compliance with French legislation for digital assets, Société Générale segregates bank cash deposits that back the coin. When users acquire EURCV, the funds are transferred to an independent custodian. Regular audits of the custodian ensure the fiat-backed crypto token holds its value. The token's issuer, SG FORGE, has a license from ACPR, requiring it to meet French regulations for digital assets. Part of that meant restructuring EURCV to comply with European Assets in Crypto Markets Regulation (MiCA).
Utility of EUR CoinVertible?
The primary role of stablecoins such as EURCV is to offer a reliable way to transact in the decentralized finance market. Tying the token to the euro affords it certain use cases.
Cross-border Payments and Remittances
International transactions are the biggest beneficiaries of EUR CoinVertible. The token provides a viable alternative to traditional banking systems. You can send EURCV across different regions without the imposition of an intermediary, as is the case with conventional payments. As a digital asset, the coin is fast, safe, and cheap. Traditional cross-border transactions can be expensive and sometimes take too long. Businesses can reduce financial friction on their operations by using the stablecoin instead.
On-chain Collateral
EUR CoinVertible acts as a store-of-value and settlement asset for on-chain payments. Blockchain-based borrowing protocols can leverage the token as collateral. The coin's stability enables it to provide security during lending without risking value fluctuations. You can borrow virtual or fiat currency with EURCV as collateral. Additionally, you can lend tokens on DeFi applications to generate interest as a passive income.
Decentralized Finance
Liquidity provision, staking, and yield farming are some of the token's use cases in the DeFi ecosystem. The stablecoin can be integrated into different DeFi systems, including lending applications, liquidity pools, and decentralized exchanges. It's a less risky option for lending and yield farming compared to typical cryptocurrencies.
Institutional Treasury Management
Companies and other entities can diversify their treasury by using the token to invest in euro-backed digital assets. Diversification not only optimizes returns but also guarantees liquidity. Capitalizing on the regulatory compliance and stability of EURCV, institutions can ensure effective treasury management, thus decreasing risks.
EUR CoinVertible Price details
ETH Contract address: 0x5F7827FDeb7c20b443265Fc2F40845B715385Ff2
›› Details & Tokenomics
Advantages of EUR CoinVertible
+ Pegging EUR CoinVertible (EURCV) to the euro stabilizes the token, cushioning users from price volatility+ The Ethereum blockchain offers the token robust security as with any other digital asset
+ A EUR stablecoin allows efficient cross-border remittances
+ The regulatory compliance of EUR CoinVertible (EURCV) sets the stage for wider adoption
+ EURVC transactions are more transparent than traditional payments, thanks to smart contracts
Disadvantages
- A rapidly evolving regulatory scene can impact the stablecoin and its value in the future- EUR CoinVertible is only available on the European exchange, Bitstamp
- Government exchange controls can adversely affect the euro's exchange rate and EURCV's value
- The token's focus, presently, is institutional adoption, meaning it's not available for personal use
- EURCV's liquidity can still suffer from negative market trends
Costs
▪ Rated at 9/10Since the stablecoin is issued on Ethereum, its transaction fees depend on what the network is charging. Users must pay gas fees, which vary with network congestion. You pay higher for transactions if the blockchain is experiencing heavy traffic. The complexity of a transaction also determines the gas fees. EUR CoinVertible doesn't support personal use.
Hence, the main charges incurred are during interactions with DeFi systems. Conversion fees are the other component to consider. When exchanging the token for EUR or other currencies, you must pay conversion fees, which vary across exchanges.
Reputation and Buzz
▪ Reputation rated at 10/10▪ Buzz rated at 7/10
The number of financial institutions developing stablecoins keeps growing as decentralized finance becomes more popular. Société Générale is one of the biggest investment firms in the world. So, the company launching a stablecoin drew considerable attention in the crypto sphere. FORGE, the group's digital asset subsidiary, is a recognized name. Therefore, when EUR CoinVertible launched, it already had strong backing, reputation-wise.
The stablecoin market is dominated by USD-pegged options, such as Tether. EURCV is one of the few tokens linked to the euro, another reason it has generated a lot of interest. Although the coin only serves institutional purposes at the moment, it promises to make a significant shift in the stablecoin sector.
FAQ
Who can use the EUR CoinVertible token?
The stablecoin is tailored for institutional clients. Users must pass Know Your Customer (KYC) and anti-money laundering (AML) procedures in accordance with French law.
Can I trust the security of EURCV?
Yes. The stablecoin leverages the security features of smart contracts and the blockchain. Its immutability and transparency guarantee safe transactions with low to non-existent risks of fraud and misuse.
Is EUR CoinVertible (EURCV) compatible with other networks?
Currently, the token is available on Ethereum-compatible public blockchains. However, its interoperability might expand in the future. So, users should watch out for news.
Can I trade with EURCV on crypto exchanges?
No. EUR CoinVertible is not available to trade on public exchanges and only serves institutional clients.
History of EUR CoinVertible
April 2023 – Société Générale - FORGE launched the stablecoin EUR CoinVertible (EURCV), which is tied to the Euro and runs on the Ethereum blockchain.
October 2023 – Forge updated the EURCV smart contract to enhance resiliency and facilitate fast transactions between whitelisted participants.
July 2024 - A restructuring of the token ensures that it complies with MiCA, satisfying all the requirements of a stablecoin.
November 2024 - FORGE announces the coin will be launched soon on XRP Ledger.
Screenshots from EUR CoinVertible
EUR CoinVertible details and tokenomics
