Highlights:
German stock exchange operator Deutsche Börse Group has announced a partnership with Societe Generale’s digital asset developer, SG-Forge, to introduce stablecoins into its financial system. This partnership introduces the EURCV and USDCV convertible tokens into the Deutsche Börse’s systems. This is aimed at improving post-trade services such as settlement, collateral management, and liquidity.
The post-trade services offered by Deutsche Börse will include the use of stablecoins issued by SocGen. These involve the Clearstream, offering settlement and custody for financial transactions. The integration will facilitate the control of collateral and treasury operations more effectively. Through stablecoins, the process of the transaction takes less time, avoiding the delays traditionally encountered through end-of-day settlement procedures.
These regulated euro- and dollar-backed stablecoins are likely to facilitate operations among market participants. It also provides easier cross-border transfer, which is more efficient for financial institutions and investors. This new setup will enable institutions to settle trades and deal with collateral in real time, enhancing the general liquidity in European markets.
Jean-Marc Stenger, the CEO of SG FORGE, commented on the importance of this collaboration. He stated,
The initial step of this collaboration will be the application of SocGen stablecoins in securities settlement and collateral processes. This will test the application of CoinVertible tokens as effective settlement instruments and treasury functions. Moreover, the stablecoins will be available on Deutsche Börse’s digital trading platforms to expand liquidity and their adoption in the financial markets.
Both organizations plan to diversify into other possible applications of the stablecoins, such as clearing, custody, and data tools. This will provide banks, asset managers, and crypto firms with a seamless bridge between traditional capital markets and the crypto ecosystem.
In addition to this collaboration with SG-FORGE, Deutsche Börse has been trying to expand the use of stablecoins in Europe. In September, Deutsche Börse and Circle signed a Memorandum of Understanding (MOU) to expand the use of stablecoins in Europe.
The tokens issued by Circle, EURC, and USDC also became part of the Deutsche Börse’s financial infrastructure. This marked the initial partnership between a leading market operator in Europe and a global issuer of stablecoins. Furthermore, the firms aim to deliver transparent and MiCA-compliant trade, settlement, and custody solutions together.
Meanwhile, SG-Forge made another step in October, launching EURCV and USDCV stablecoins for use in DeFi institutions. It featured the listings of tokens like Uniswap and Morpho on Ethereum-based platforms. The stablecoins provide institutional customers with the option to access regulated assets 24/7, bringing increased regulation to the decentralized finance ecosystem.
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