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| Jean-Marc Stenger |
While U.S.-based issuers dominate the stablecoin sector, the French banking giant is placing its bets on the euro, MiCA regulation, and integration with DeFi.
When it comes to digital assets, traditional banks have long remained on the sidelines-cautious, skeptical, and at times openly hostile. But times are changing. Société Générale, one of Europe’s oldest financial institutions, is not merely entering the crypto industry; it intends to establish a new order there.
According to the bank’s forecasts, the world will witness a significant acceleration in the adoption of digital assets within traditional finance (TradFi) in the coming months. Rising trading volumes and the expansion of institutional use cases, in the view of Société Générale’s leadership, are evolving from isolated incidents into a sustained trend.
“The recent increase in activity is beginning to lead to broader involvement from TradFi institutions,” said Jean-Marc Stenger, CEO of the digital assets division Société Générale Forge. His words are backed by the bank’s actions: Société Générale has already developed and launched its own euro-denominated stablecoin, and according to Stenger, transaction volumes are steadily growing.
Stenger expects “a massive acceleration of this trend toward the end of the year and the beginning of next, with the real adoption in TradFi of the first asset to come from the crypto industry, namely stablecoins.” This observation reflects a growing confidence among European banks that stablecoins are moving beyond crypto-native use cases and penetrating mainstream financial infrastructure.
For the French giant, this process is not passive observation but active participation. Through its Forge division, the bank has issued stablecoins denominated in both euros and dollars, operating within the framework of the European Markets in Crypto-Assets directive (MiCA). This regulatory framework, one of the most progressive in the world, gives European banks an advantage that their U.S. competitors still lack.
Today, the stablecoin market is overwhelmingly dominated by dollar-backed issuers. Tether’s USDT and Circle’s USDC command the lion’s share of the market, while euro-denominated stablecoins remain on the periphery. But Société Générale intends to change that.
“We see a market niche for a well-regulated, reliable offering from a top-tier banking group,” Stenger emphasized. “This is a strategic commitment for the group.”
The bank’s ambition is clear: to become the benchmark issuer of a euro-denominated stablecoin in Europe. At a time when European regulators are actively promoting the concept of a “digital euro” while simultaneously creating a favorable environment for private initiatives through MiCA, Société Générale occupies a unique position.
However, the integration of stablecoins into TradFi faces a significant challenge: the question of yield. Under the current regulatory framework of MiCA, stablecoin issuers are not permitted to pass on interest earned from reserve assets to holders. This restriction, on one hand, protects consumers from undue risk, but on the other, it diminishes the appeal of stablecoins for investors accustomed to the yield offered by traditional instruments.
Stenger points to ongoing policy discussions in Brussels that could shape the next phase of stablecoin adoption. EU regulators are considering revisions to certain elements of MiCA, and the issue of yield is at the center of their attention.
But the head of Forge sees the solution not solely in legislative change. In his view, the key may lie in the use of decentralized finance (DeFi). Société Générale is already exploring opportunities to integrate its stablecoins into lending and borrowing protocols. Such an approach would allow holders to earn yield without violating regulatory requirements, simply by using stablecoins for their intended purpose-as collateral within decentralized systems.
By early 2026, if Stenger’s forecasts hold true, we are likely to see a fundamentally different landscape: stablecoins issued by systemically important banks will become an integral part of the TradFi infrastructure, and Europe—with the help of MiCA and initiatives led by Société Générale—will offer a genuine alternative to dollar hegemony in the world of digital assets.