PARIS (Reuters) -German stock exchange operator Deutsche Boerse plans to integrate stablecoins made by French bank Societe Generale in its settlement business, the companies said on Tuesday, in an attempt to get the tokens more widely used.
Societe Generale's crypto arm, SG-FORGE, has created a dollar-backed and euro-backed public stablecoin, but both have seen limited adoption.
Deutsche Boerse plans to add the tokens to Clearstream, the companies said, by adding them to its custody services and possibly using them to settle trades and manage collateral in future. The partnership is the first time SG-FORGE's stablecoins will be integrated into a mainstream financial platform.
Jean-Marc Stenger, CEO of SG-FORGE, said that using stablecoins is a quicker and cheaper way to move money.
"What we want to achieve here is to bring to the traditional financial ecosystem the efficiency and speed we all see in the crypto ecosystem," he said.
Banks and other financial institutions have for years been trying to find a role for blockchain-based assets, including stablecoins, in their businesses.
There are $29.6 million worth of Societe Generale's dollar-backed token in circulation, and 65.2 million euros ($75.6 million) of the euro-backed equivalent, according to the company's website. The stablecoin market is dominated by El Salvador-based Tether, which says it has issued $184 billion worth of tokens.
Crypto markets have surged following the election of U.S. President Donald Trump.
($1 = 0.8630 euros)
(Reporting by Elizabeth Howcroft; Editing by Toby Chopra)
