While the stablecoin conversation in crypto tends to revolve around Tether and Circle’s dollar-pegged tokens, a quieter race is playing out on the other side of the Atlantic. Societe Generale’s euro stablecoin EURCV added roughly $5.6 million to its market cap, making it the second-fastest-growing euro stablecoin by that measure.

What EURCV is

EURCV, short for EUR CoinVertible, is a euro-pegged stablecoin issued by SG Forge, the digital assets subsidiary of French banking heavyweight Societe Generale. The token launched in 2023, making it one of the first bank-issued euro digital assets to reach the market.

It is a 1:1 euro-backed electronic money token, meaning every EURCV in circulation is supposedly matched by an equivalent euro held in reserve. The token is deployed on both Ethereum and Solana, giving it access to two of the largest smart contract ecosystems. It also integrates with platforms such as Morpho’s yield-generating vaults, allowing holders to put their euro stablecoins to work in DeFi rather than leaving them idle.

EURCV is fully compliant with MiCA, the European Union’s Markets in Crypto-Assets regulation. For institutions that need to satisfy regulatory requirements before interacting with crypto-related products, that compliance is a central part of the token’s appeal.

The euro stablecoin market

EURCV’s market capitalization currently stands in the range of $140 million to $180 million, making it the second-largest euro stablecoin behind Circle’s EURC, which leads the category.

The combined market capitalization of euro-denominated stablecoins is estimated at between $650 million and $780 million. By comparison, Tether’s USDT alone has a market cap above $100 billion.

In late August, EURCV recorded weekly inflows of $11.6 million. Its circulating supply is between 130 million and 156 million tokens. Schuman Financial’s EUROP is another MiCA-compliant competitor seeking market share. Exchange listings have also helped increase visibility, and EURCV is available on Bitstamp, among other platforms.

Why banks are backing stablecoins

EURCV is intended for use cases including cross-border payments, settlement of tokenized assets, and integration into DeFi platforms. As dollar-denominated stablecoins have become core infrastructure for crypto markets, European regulators and institutions have become increasingly uneasy with the prospect of euro-zone digital finance relying entirely on dollar rails. EURCV and competing products are an effort to build euro-native alternatives.

At the same time, bank-issued stablecoins carry the baggage of the institutions behind them. Societe Generale, like any major bank, is subject to regulatory pressure, capital requirements, and reputational considerations. If problems arise at the parent company, the stablecoin subsidiary does not operate in a separate universe.