Euroclear and Societe Generale-FORGE are exploring the use of a US dollar stablecoin to settle tokenised short-term funding instruments.
The initiative aims to explore settlement solutions for non-euro transactions on distributed ledger technology (DLT).
The partnership focuses on the settlement of tokenised US dollar-denominated Negotiable European Commercial Paper (NEU CP).
The companies will evaluate the use of USD CoinVertible for these transactions. SG-FORGE, the digital asset subsidiary of the Societe Generale group, issues the stablecoin, which complies with the European Union’s Markets in Crypto-Assets (MiCA) regulation.
European financial institutions are currently working to modernise the commercial paper market.
Project Pythagore, an ongoing regional initiative, aims to transition euro-denominated NEU CP onto DLT using central bank money for settlement.
Because the commercial paper market is inherently multi-currency, Euroclear and SG-FORGE are testing alternative digital cash solutions to support US dollar transactions in parallel with this DLT evolution.
“As we work with Banque de France to help the NEU CP market evolve toward DLT, this collaboration allows us to test how USD settlement can evolve alongside it,”
said Isabelle Delorme, Head of Product and Innovation at Euroclear.
“This collaboration highlights the growing role of digital cash solutions in modernising financial market infrastructure,”
said Jean-Marc Stenger, CEO of Societe Generale-FORGE.
“We are exploring how a robust and secure asset can enhance efficiency and resilience in cross-currency markets, while remaining fully aligned with regulatory and market standards.”
Featured image credit: Edited by Fintech News Switzerland, based on image by smartmalik6384 via Magnific
