Société Générale, through its digital asset division SG Forge, is preparing to launch a US dollar-backed stablecoin on Ethereum. The launch is set to occur soon, with Solana support planned. The bank, valued at over $40 billion, continues to increase its activity in the stablecoin market, aiming to cater to institutional clients across Europe.

Société Générale Expands Stablecoin Push With Ethereum-Based Launch

Société Générale’s crypto division, SG Forge, is leading the launch of a dollar-backed stablecoin on Ethereum. The initiative adds to the bank’s previous efforts in tokenized financial assets and digital currencies. The new stablecoin is designed for institutional settlement and will not be made available for public retail use.

SG Forge’s CEO, Jean-Marc Stenger, previously stated that digital currencies offer “efficiency and regulatory compliance” for financial institutions. The new stablecoin will follow this model, leveraging blockchain transparency while meeting strict European regulatory requirements.

Although the launch date is yet to be confirmed, the project aligns with Société Générale’s broader goal to capture market share in the stablecoin sector. The bank aims to create a regulated alternative to popular USD-based stablecoins currently used in decentralized finance (DeFi) and cross-border transactions.

Solana Blockchain Next in Line as Expansion Plan Unfolds

After Ethereum, SG Forge plans to issue the dollar-backed stablecoin on Solana.Because of this approach, significant companies can settle their transactions more quickly and at reduced fees. Because Solana is being adopted more in the fintech world, it is a likely pick for the bank’s next blockchain move.

Both CoinGecko and Messari show that Solana has a strong record of quick processing and low fees, which is helping traditional finance learn about it. Using both Ethereum and Solana indicates Société Générale wants to provide flexibility in its use of blockchain technology.

MobileChain’s extension to several chains will allow institutional clients to use their preferred blockchain for settlement, storing assets or interoperating with smart contracts. Being able to use multiple chains helps protect against both crowded networks and possible security trouble.

Dollar-Backed Stablecoin Targets Institutional Market in Europe

Only regulated institutions and approved investors are allowed to use the bank’s upcoming stablecoin. According to the company, they intend to utilize this technology for corporate settlements, managing their treasury, and transactions in tokenized securities. Unlike USDT and USDC, the product is not designed for people to use personally.

The decision matches the European Union’s MiCA framework, which is designed to set clear rules for digital assets. UNED voices permit financial institutions to release digital currencies after careful assessment and supervision.

The EU market for stablecoins is being filled by Société Générale, analysts believe, because currently, few regulated issuers offer euro and dollar stablecoins. The dollar-backed token can also be useful for institutional clients in doing financial operations, like lending and repo trades, on the blockchain.

Global Stablecoin Market Gains Momentum Amid Regulatory Progress

Many global financial players are starting to use stablecoins. In recent months, Mastercard, Visa, and Stripe have started accepting payments made with stablecoins. After the Diem project did not succeed, Meta is now focused on building a new crypto solution.

According to data from CoinMarketCap, the market cap of stablecoins has recovered to over $160 billion. USDT remains the dominant stablecoin, followed by USDC. Even so, traditional banks are trying to establish regulated options that are approved by law.

Ripple, Circle, and others like WLFI are acting fast to adapt to the GENIUS Act and other future laws in the US. Earlier this year, WLFI introduced its USD1 stablecoin on Ethereum, while Circle and Tether went on to welcome new applications and regions too.

Regulated banks entering this market through Société Générale may reshape demand by financial institutions in Europe. Building on Ethereum and Solana, the dollar-backed token could attract those who want to do compliant digital asset deals.