Euroclear and Societe Generale-FORGE (SG-FORGE), the digital asset subsidiary of France-based Societe Generale group, have announced a collaboration to explore how regulated digital cash could support the issuance and settlement of short-term funding instruments denominated in USD.
The initiative centres on assessing the potential use of USD CoinVertible, a stablecoin issued by SG-FORGE and compliant with the EU's Markets in Crypto-Assets Regulation (MiCA), to settle tokenised USD-denominated Negotiable European Commercial Paper (NEU CP). NEU CP is a short-term financing instrument widely used across European markets.
Bridging the gap in multi-currency DLT settlement
The collaboration is positioned against the backdrop of broader modernisation efforts in European short-term debt markets. Project Pythagore, an existing market initiative, aims to migrate EUR-denominated NEU CP onto distributed ledger technology (DLT) with settlement in central bank money. However, because the NEU CP market operates across multiple currencies, that framework does not extend to non-euro transactions, a gap the Euroclear–SG-FORGE collaboration seeks to address for USD-denominated instruments.
By introducing a MiCA-regulated stablecoin as a potential settlement asset for USD transactions, the two organisations aim to maintain the safety, resilience, and transparency standards expected of financial market infrastructure while supporting liquidity conditions across the market. The collaboration will assess whether this model can function alongside, rather than separately from, the central bank money settlement approach being developed for euro instruments.
A company official at Euroclear noted that tokenising NEU CP could create more efficient funding conditions for issuers and contribute to overall market liquidity, framing the work as part of a broader evolution of the NEU CP market toward DLT infrastructure. SG-FORGE's chief executive, in turn, pointed to the role of MiCA-compliant digital cash solutions in addressing cross-currency settlement within existing regulatory and market standards.
The collaboration reflects a wider pattern in European financial market infrastructure, where the arrival of MiCA has given regulated stablecoins a clearer legal status, opening the door to their use in institutional settlement contexts. For the NEU CP market specifically, which has historically relied on conventional cash settlement mechanisms, the assessment marks a practical step toward evaluating whether tokenised money instruments can meet institutional requirements at scale.
No timeline for the assessment's completion or any subsequent implementation phase has been disclosed.
