By Elizabeth Howcroft
PARIS, April 22 (Reuters) – French bank Societe Generale is taking on more crypto companies as customers and expects the use of stablecoins by its corporate clients to grow, SG-Forge CEO Jean-Marc Stenger told Reuters, although take-up so far is limited.
SocGen’s crypto business has 15 clients, which include crypto exchanges, brokers and wallet providers, but it is increasingly providing banking services for such companies as the crypto industry in Europe matures after last year’s roll-out of landmark European Union crypto regulations, Stenger said.
“More and more we see the connections we have established with crypto native companies through Societe Generale-Forge as a good way to deliver just traditional banking services to this entity,” he added in an interview.
Helped by President Donald Trump’s administration, the crypto industry’s connections to the mainstream financial system have grown in recent years with a clutch of crypto companies going public in the U.S.
While banks have been experimenting with ways to use crypto tokens in their operations, there is little visibility on how much direct exposure European lenders have to digital assets.
Stablecoins are mostly used in crypto trading and not widely accepted as a means of payment.
SOCGEN BETTING ON STABLECOIN TO TAKE OFF
SocGen is the only major bank to have issued publicly traded stablecoins – one pegged to the dollar in 2025 and a euro one in 2023 – with others clubbing together to explore the potential of the technology or waiting to see more demand from their clients.
SocGen is not part of a consortium of 10 European banks, including ING, UniCredit and BNP Paribas, which plans to launch a euro-pegged stablecoin later this year, but is having bilateral talks with some members of the group, Stenger added.
Despite being regulated under the EU’s crypto rules, SocGen’s tokens have so far seen limited uptake.
Overall stablecoin volumes have surged in recent years, but with just 105 million euros’ worth of tokens, SocGen’s euro stablecoin is dwarfed by El Salvador-based Tether and U.S.-based Circle’s USDC, which say they have $187 billion and $78.6 billion of dollar-pegged tokens in circulation respectively.
Stenger said that this could change as crypto companies need euro-pegged stablecoins for retail clients in Europe and are starting to seek European alternatives to the existing players.
Although Stenger expects stablecoins to be used by companies to manage cash and collateral, there is little sign of this so far. RBC analysts said last week that banks surveyed by RBC Capital Markets reported that stablecoins’ impact on liquidity and treasury management was currently “negligible”.
(Reporting by Elizabeth Howcroft; Editing by Tommy Reggiori Wilkes and Alexander Smith)
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