Bullish Europe has emerged as the first platform to list Société Générale-Forge’s USDCV stablecoin, which enhances access to regulated digital assets within the European Union.
As stated in a Tuesday announcement, Bullish is the pioneer in offering USD CoinVertible (USDCV) to its clientele via its trading platform regulated by the German Federal Financial Supervisory Authority (BaFin) and under the Markets in Crypto-Assets Regulation (MiCA).
This follows an announcement in early June where Société Générale-Forge indicated its plans to launch the stablecoin with assistance from US-based financial services firm Bank of New York Mellon as the custodian.
The launch also builds on the earlier introduction of its euro-pegged stablecoin EUR CoinVertible (EURCV) for institutional clients in 2023. A representative from Société Générale-Forge mentioned to Cointelegraph that USDCV is designed to cater to both retail and institutional markets, aimed at remittances, foreign exchange, payments, and as a store of value.
Both USDCV and EURCV are classified as e-money tokens in the EU and are transferable under the European Union’s Markets in Crypto-Assets Regulation (MiCA) provisions. The company has obtained an electronic money institution license from the Autorité de Contrôle Prudentiel et de Résolution, the French regulatory authority, the representative noted.
Related: Custody and transfers of non-MiCA-compliant stablecoins not restricted — ESMA
Europe is not lagging in the stablecoin arena
While US initiatives have historically overshadowed the stablecoin landscape, Europe is increasingly stepping up its efforts.
By the end of July, EURAU, a new euro stablecoin project backed by Deutsche Bank’s DWS, Flow Traders, and Mike Novogratz’s Galaxy, was launched on the Ethereum blockchain. This stablecoin received BaFin’s approval in early July.
In July, stablecoin issuer Paxos also introduced the Global Dollar (USDG) stablecoin in the EU. The issuer is compliant with MiCA and has oversight from regulators in Finland and Singapore.
Earlier this year, ten stablecoin issuers were granted approval under MiCA, although market leader Tether’s USDt (USDT) was notably absent from this list.
Related: Bitcoin Suisse legal chief highlights gaps in EU, Swiss stablecoin regulations
European lawmakers express caution regarding stablecoins
Despite regulatory advancements, EU officials have raised alarms about the risks associated with stablecoins, particularly those issued from outside the region.
Recently, a senior official from the Bank of Italy expressed concerns that stablecoins from multiple entities across various countries pose considerable risks to the European Union’s financial system unless strictly regulated. Christine Lagarde, president of the European Central Bank (ECB), also emphasized the need for policymakers to address shortcomings in stablecoin regulation earlier this month.
Lagarde specifically mentioned stablecoins issued beyond the “robust” MiCA framework. Her comments were echoed by ECB adviser Jürgen Schaaf, who warned in late July that US stablecoins represent a threat to the euro:
“If we forgo a common approach, we risk fuelling instability, regulatory arbitrage and global US dollar dominance.”
In mid-April, Italy’s Minister of Economy and Finance cautioned that US stablecoin policies pose a greater risk to the local economy than US tariffs. Like Schaaf, he stressed that the rising appeal of US stablecoins to Europeans should not be underestimated.
Magazine: Crypto aimed to disrupt banks, now it’s becoming them in the stablecoin battle
