Investing.com -- French banking giant Societe Generale (OTC: SCGLY ) is set to launch a dollar-backed stablecoin through its cryptocurrency subsidiary, SG-FORGE. This move marks the bank as the first major European lender to introduce a dollar-pegged cryptocurrency in the rapidly growing stablecoin market.

The new cryptocurrency, named "USD CoinVertible", will operate on the Ethereum and Solana blockchains. SG-FORGE announced on Tuesday that the coin is expected to become publicly tradable from July. BNY Mellon (NYSE: BK ), a prominent banking and financial services company, will act as the custodian for the reserves of this new stablecoin, according to Societe Generale.

Prior to this, SG-FORGE had launched a euro-based stablecoin back in 2023. However, this cryptocurrency has not seen widespread adoption, with only 41.8 million euros ($47.62 million) worth of the token currently in circulation, as per the information on its website.

Stablecoins are a unique type of cryptocurrency, which are pegged to a traditional currency, most commonly the dollar. These digital assets offer a way for individuals to transfer large amounts of money without having to use traditional banking payment systems.

The stablecoin market has seen a rapid expansion in recent years. Tether , a cryptocurrency company, has been a major driving force behind this growth. It has issued $155 billion of its dollar-pegged token, making it the largest stablecoin issuer to date.

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