SG Forge, the crypto unit of Societe Generale bank, will launch a Euro-pegged stablecoin, EUR CoinVertible (EURCV), on the Solana blockchain. In a press release, the French firm disclosed that the EURCV would be a regulatory-compliant stablecoin, giving users more efficient and faster access to the network’s decentralized finance ecosystem.
With the move, Solana became the second network to integrate the EURCV after launching on Ethereum last year. According to the company, its launch on Solana will make it accessible to institutional and retail users on a more scalable network.
The press release further highlighted the benefits users would receive from using the EURCV stablecoin on Solana, noting that it would come with ultra-low fees, lightning-fast transactions, and enhanced scalability.
Meanwhile, EURCV integration on Solana is expected to onboard institutional and retail users. SG Force noted that the integration would expand the stablecoin use cases within the DeFi ecosystem, giving new opportunities to all DeFi users.
Solana Foundation head of Institutional growth Nick Ducoff also described the integration as a welcome addition to the Solana ecosystem, noting that the introduction of EURCV, a MiCA-compliant stablecoin, on Solana will bring a powerful new option for users looking for speed, efficiency, and stability.”
Solana adoption grows due to cheap and fast transactions
EURCV deployment on Solana highlights the growth of the network’s stablecoin ecosystem in recent months. According to Defillama, Solana’s total stablecoin market cap is around $3.79 billion and has fallen 2.26% in the last seven days. However, the supply of several stablecoins, including Tether USDT, Ondo USDY, and Ethena USDe, has increased over the last seven days.
For many, Solana’s scalability has been the primary reason behind the growth of its stablecoin ecosystem, with many stablecoin issuers referring to this quality when they deploy on the network. PayPal noted during the launch of its stablecoin on Solana that PYUSD transactions would be faster and cheaper due to the blockchain.
Solana’s Top 5 Stablecoins (Source: DeFillama)
However, the network continues to play second fiddle to Ethereum regarding integrations and on-chain developments, but that could change soon as more institutions show interest in it. Leading DeFi protocol Sky (formerly MakerDAO) reportedly said at the ongoing Solana Conference in Singapore that it will deploy on the network.
Euro stablecoins struggle to gain adoption, but that could change
Meanwhile, the integration of EURCV on Solaha also represents another shot at adoption for the stablecoin, which has struggled since it was on the Ethereum network. According to Etherscan data, the stablecoin has a supply of just 33 million with 28 holders and 154 transactions.
EURCV Supply (Source: EtherScan)
Although this highlights its low level of adoption on the network, it is a tale common to Euro-pegged stablecoins in general. Defillama data shows that the biggest Euro stablecoin by market cap is Circle-issued EURC, with a circulating supply of 52.61 million, closely followed by Statis EURS, with a supply of 43.68 million.
However, Euro-pegged stablecoins could gain momentum in the coming months with the Markets in Crypto Assets (MiCA) now in effect. Experts, including Circle EU policy director Patrick Hansen, believe that new regulation will enable regulated stablecoins to grow in the region as it provides more structure for the so-called electronic money tokens (EMTs).
