SocGen to make markets in euro stablecoin on Kraken

Société Générale will act as a market maker for its own euro stablecoin on Kraken, after the crypto exchange agreed to list the EUR CoinVertible, issued by the bank’s digital assets subsidiary Société Générale-FORGE (SG-FORGE).

The firms said on Tuesday 3 November that the stablecoin would later be integrated into Kraken’s crypto derivatives as the cash leg for collateral management. No timetable was given.

A market maker continuously quotes prices to buy and sell an asset, so that traders can deal when they want to. Société Générale said its role on Kraken would make it one of the first major banks to carry out regulated crypto-asset market making on a global crypto platform. SG-FORGE aims to make EUR CoinVertible the most liquid euro-denominated stablecoin.

Kraken clients will be able to use EUR CoinVertible to buy, sell and transfer digital assets. The firms said it would be the first euro stablecoin issued by a subsidiary of a major European banking group to be available on the platform.

SG-FORGE is licensed as an investment firm and authorised to provide services under MiFID II and the EU’s Markets in Crypto-Assets Regulation (MiCA). It is supervised by the French regulators, the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the Autorité des Marchés Financiers (AMF). It is also authorised as an electronic money institution and issues both EUR CoinVertible and USD CoinVertible, which it says are MiCA-compliant.

Kraken, founded in 2011, says its clients trade more than 600 digital assets, as well as US futures, US-listed stocks and exchange-traded funds, and six national currencies.

The firms said the partnership is intended to increase stablecoin adoption and support the development of new on-chain financial applications.