Global banking conglomerate Societe Generale has partnered with Bitpanda, to grow crypto and stablecoins into a key component of the global financial system.
Bitpanda will work with the banking conglomerate’s blockchain subsidiary, Societe Generale-FORGE, to advance the mainstream adoption of its euro-denominated stablecoin EUR CoinVertible (EURCV).
The partnership is a crucial step in making stablecoins a part of the wider financial system, according to Jean-Mark Stenger, CEO of Societe Generale-FORGE.
Stenger told Cointelegraph:
“This partnership is a crucial step towards achieving our vision of making stablecoins a core component of the global financial system. Together with Bitpanda, we are confident in our ability to offer European users a stable, secure, and accessible digital currency."
The partnership comes ahead of the full implementation of the Markets in Crypto-Assets (MiCA) bill, the first comprehensive regulatory framework for the crypto industry. The framework impacting crypto-asset service providers is set to go into full effect on Dec. 30.
Euro-based stablecoins are essential for the European crypto industry
Euro-based stablecoins will be essential for the future of the European crypto industry, according to Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, who wrote:
“The landscape is changing, integration with traditional finance is increasing, and fully regulated stablecoins are the bridge that will make it possible. We will work with Societe Generale-FORGE to bring that future one step closer.”
Stablecoins are the main on-ramp between the world of fiat currencies and digital assets. Investor access to regulated stablecoins is essential for attracting more investment into cryptocurrencies.
Societe Generale’s new stablecoin will be MiCA-compliant and listed on the Bitpanda trading platform for European investors.
Societe Generale is the world’s 19th largest banking group, holding over $1.7 trillion in total assets as of 2023, according to Wikipedia data.
World’s largest banks. Source: Wikipedia
MiCA regulations are just around the corner
Increasingly, more crypto firms are preparing for the full implementation of the MiCA bill, including Kraken exchange, which acquired the Netherlands’ oldest registered crypto broker firm, Coin Meester (BCM), as part of its European expansion.
The upcoming MiCA bill will make the European Union the first jurisdiction with a holistic regulatory framework on digital assets, which could be a pivotal moment for crypto regulation according to compliance experts.
While MiCA’s full implementation is set for December 2024, it could suffer potential delays due to the technical complexity of the implementation, according to Hedi Navazan, head of compliance and regulatory affairs at Crystal Intelligence.
Navazan told Cointelegraph:
“Technological complexity, cross-border jurisdictional nature of crypto assets complicates regulatory enforcement and necessitates strong international cooperation and information-sharing mechanisms.”
Crystal Intelligence has co-hosted seven roundtable discussions on the upcoming MiCA bill with public and private participants and notable crypto firms, including Binance, Bitpanda, Kraken and members of the European Commission.
What are stablecoins, and how do they work? Source: Cointelegraph
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