- Société Générale enabled its euro and dollar stablecoins to work with major decentralised finance (DeFi) protocols.
- The bank’s institutional clients can now use Uniswap for trading and Morpho for lending and borrowing these assets.
- Regulatory changes in the U.S. and Europe are encouraging banks to adopt digital asset services.
- DeFi lending is becoming a significant sector, reaching $130 billion in deposits earlier this year.
- Other banks, including Credit Suisse and Standard Chartered, have also made recent moves into crypto and tokenisation services.
Société Générale, one of Europe’s top banks, has begun integrating its regulated stablecoins with leading DeFi platforms, allowing its institutional clients to trade, lend, and borrow using digital assets. The bank’s digital asset subsidiary, SG Forge, has connected its euro (EURCV) and dollar (USDCV) stablecoins to Uniswap and Morpho.
Clients can now exchange EURCV and USDCV with other digital currencies on Uniswap, a major decentralised exchange, and use Morpho, the second-largest DeFi lending platform with $11 billion in deposits, for borrowing and lending activities. According to recent data from DefiLlama, total deposits in DeFi lending platforms reached a record $130 billion in early September.
The integration signals one of the first times a major bank has moved from trial stages to real use of DeFi infrastructure. Banks are experimenting with stablecoins amidst a wave of crypto hype that’s washing over traditional finance, the article noted. Société Générale has previously explored DeFi, including a 2021 proposal to use its securities for digital loans through DeFi lender MakerDAO-loans/”>Sky, formerly MakerDAO. In 2023, the bank issued its stablecoins on Ethereum and Solana blockchains.
Other financial institutions are also entering the space. In 2023, Credit Suisse backed Taurus, a digital asset custody firm focused on helping Wall Street tokenize assets. Later that year, Standard Chartered partnered with Paxos on stablecoin reserve management.
The European Union’s MiCA regulations, effective since June 2023, and landmark stablecoin rules in the U.S., passed in July, have contributed to a more secure legal environment for banks in the digital asset industry. Planned market structure regulations in the U.S. could accelerate bank involvement in DeFi, though legislative delays are possible.
If these integrations succeed, they may become a model for further bank participation in decentralised finance.
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