Societe Generale Launches Stablecoin on XRP Ledger
Major financial institutions are launching products on the XRP Ledger, signaling growing traditional finance adoption of blockchain. Societe Generale has launched its EUR CoinVertible stablecoin, while the fintech firm Soil has introduced a yield protocol for its new RLUSD stablecoin. The moves come as Ripple's CEO estimates an 80% chance the CLARITY Act, which would provide regulatory certainty for stablecoins, will pass the U.S. Congress by April.
- The expansion of Societe Generale's EUR CoinVertible (EURCV) to the XRP Ledger follows previous launches on Ethereum and Solana, as part of a deliberate multi-chain strategy to enhance liquidity and cross-border utility. - The choice of XRP Ledger is aimed at leveraging its specific design for fast, low-cost payments, with transaction settlements in 3-5 seconds and costs significantly lower than many other Layer-1 networks. - This move coincides with the XRP Ledger recently surpassing Solana in total value of tokenized Real-World Assets (RWAs), reaching approximately $1.756 billion compared to Solana's $1.682 billion. - However, the RWA metric differs significantly between the two chains; XRPL's value comes from a small number of high-value, institutionally-held "represented assets," while Solana's value is in more broadly "distributed assets" with a much larger holder base and higher transfer volumes. - The Soil protocol's new yield product for RLUSD on XRP Ledger is backed by tokenized RWAs like private credit and T-bills, and its first $1 million pool was filled in under 72 hours, signaling strong demand for compliant, asset-backed yield. - Soil's developer, ORQO Group, has a track record of deploying on EVM chains like Polygon, BNB Chain, and Arbitrum, indicating a potential playbook for RWA yield protocols to expand across different ecosystems. - The XRP Ledger is enhancing its institutional appeal with features like a "Permissioned DEX" amendment, designed to create gated, compliant trading environments for approved participants, a feature that aligns with the objectives of regulated entities like SG-FORGE. - Societe Generale's digital asset unit, SG-FORGE, is the first company to receive a full digital asset service provider (DASP) license in France, and its EURCV stablecoin is structured to be fully compliant with the EU's Markets in Crypto-Assets (MiCA) regulation.
