Société Générale becomes the first major bank to launch a stablecoin backed by the dollar on Ethereum, through its subsidiary SG-Forge, marking a strategic move to compete with Circle and Tether in the stablecoin market.
Société Générale becomes the first bank to launch a stablecoin on a public blockchain
The landscape of stablecoins is set to welcome a new heavyweight. For the first time, a major bank will issue a stablecoin backed by the dollar on a public blockchain. Leading the charge is the French bank Société Générale, through its subsidiary SG-Forge, making a bold move on Ethereum, as reported by The Big Whale.
An assertive foray into Web3
This announcement is far from insignificant. It signifies a strategic turning point for one of the pillars of European finance. After launching EURCV, a 100% institutional euro stablecoin, SG-Forge is stepping up its game with an asset denominated in dollars, the predominant currency in global markets.
This new token is expected to be available on-chain and compliant with MiCA regulations, where most crypto projects are still grappling with regulatory constraints. The goal is clear: to capture a slice of the tokenized dollar market, where Circle and Tether (before MiCA for the latter) currently reign supreme.
Société Générale and its regulatory arsenal as a competitive advantage
Unlike crypto-native initiatives often hindered by a lack of framework or licenses, Société Générale plays on familiar ground when it comes to compliance. Already registered as a PSAN since 2023, the bank has a legal and regulatory structure tailored to meet European requirements.
This strategic positioning allows SG-Forge to establish itself as a credible player in financial tokenization. In a market where trust is as valuable as liquidity, this is no small detail.
The dollar still reigns in crypto
The timing is perfect. In May 2025, the total market capitalization of stablecoins exceeds $250 billion. The euro still struggles to make its mark, with EURC (Circle) lagging in 23rd place with only $230 million in TVL. The dollar, on the other hand, remains the undisputed kingpin of the sector.
By launching a compliant digital dollar on Ethereum, Société Générale sends a clear message: European banks will not sit idly by in the Web3 revolution. They intend to claim their stake, armed with regulation and the firepower of the traditional banking system.
