Societe Generale’s digital asset arm SG Forge has partnered with Morpho, a leading decentralized finance (DeFi) lending protocol, to launch its MiCA-compliant stablecoins.
The announcement was shared by Morpho on Tuesday, with a post on X, citing, “This is the beginning of an inevitable shift: banks are coming onchain and Morpho will be their universal backend.”
This initiative will allow SG Forge to power lending and borrowing for its MiCA-compliant stablecoins, EUR CoinVertible (EURCV) and USD CoinVertible (USDCV), using Morpho’s decentralized infrastructure.
According to CoinMarketCap data, EURCV has a market cap of $66 million, compared to Circle Internet’s EURC at $260 million. USDCV has a market cap of $32.2 million, while Tether’s USDT leads the stablecoin dominance with $174.8 billion in market cap. The two are comparatively smaller in the existing market.
How the partnership works
SG Forge will mint its fiat-backed stablecoins, EURCV and USDCV, which are compliant with MiCA-regulations. Both these stablecoins are backed 1:1 by euros and U.S. dollars. The minted stablecoins will then be deployed into curated Morpho Vaults managed by MEV Capital.
“MEV Capital will act as a curator of EURCV and USDCV Morpho vaults, supervise the list of eligible crypto collateral assets, ensure optimal capital allocation, and manage efficient liquidations of undercollateralized vault positions.” said the official MEV Capital, another collaborator for this development.
These vaults will further deploy the stablecoins into Morpho’s lending markets, which are collateralized by a range of digital assets. These assets include various cryptocurrencies and tokenized money market funds, allowing SG Forge to offer new product offerings built on DeFi rails, all within a compliant framework.
Morpho is a decentralized lending protocol on Ethereum and Base, gaining traction as a core infrastructure for on-chain finance. It recently reached a key milestone in the DeFi lending space, crossing $10 billion in deposits. Companies are choosing Morpho for a number of reasons, a recent example being CoinBase launching USDC lending with Morpho integration.
Also Read: Coinbase Launches USDC Lending with Morpho Integration
