Exclusive: SG-Forge Faces Internal Roadblocks in Driving Euro Stablecoin DeFi Adoption

Yesterday, SG-Forge announced a bold expansion into the U.S. stablecoin market, partnering with Bank of New York Mellon (BNY) as its reserve custodian. This move arrives more than two years after SG-Forge — the blockchain-focused arm of Société Générale — first launched its euro-pegged stablecoin, EUR CoinVertible (EURCV).

When EURCV debuted in April 2023, SG-Forge made headlines as the first major global bank to issue a euro-backed stablecoin. The ambition was clear: deliver institutional-grade euro liquidity directly into both traditional finance and DeFi ecosystems, backed by the reputation of a top-10 European banking institution.

But over two years in, adoption remains limited. Only around €41 million in EURCV has been issued to date, with more than 90% concentrated in just four wallets. Roughly €25 million remains untouched. A DeFi launch has yet to materialize.

This slow rollout stands in contrast to Circle’s EURC, which now nears €200 million in market capitalization and even offers yield on protocols like Morpho and Aave.

Sources say the problem isn’t regulatory — it’s internal. For now, the bank’s leadership continues to block deployment of the stablecoin in DeFi.

Morpho Blue Integration on Hold

“SG-Forge’s strategic mistake was being too tightly integrated into the banking group,” said multiple sources. “For example, IT support functions are handled by the investment bank. As a result, any initiative involving DeFi requires approval from the compliance department — which has consistently opposed it so far, despite internal education efforts on the topic.”