As part of a recent effort that advances the ongoing digitalization of European short-term funding markets, Euroclear and Societe Generale-FORGE (SG-FORGE) have announced a new collaboration to examine the use of a regulated U.S. dollar stablecoin for settling tokenized debt instruments.
The partnership focuses on assessing how digital cash solutions can support the issuance and settlement of USD-denominated Negotiable European Commercial Paper (NEU CP) on distributed ledger technology (DLT).
The initiative centers on USD CoinVertible, a MiCA-compliant stablecoin issued by SG-FORGE, the digital assets subsidiary of Societe Generale.
Euroclear and SG-FORGE will evaluate its potential application in settling tokenized versions of these short-term financing tools, which are widely used by issuers across Europe for flexible, liquid funding.
This effort complements broader modernization efforts in the NEU CP market. Euroclear is already working with the Banque de France on Project Pythagore, which aims to bring euro-denominated NEU CP onto DLT platforms with settlement in wholesale central bank digital currency.
Because the commercial paper market operates in multiple currencies, the new collaboration seeks to develop parallel solutions for non-euro transactions, particularly in US dollars, without compromising established standards of safety, resilience, and transparency.
Isabelle Delorme, Head of Product and Innovation at Euroclear, highlighted the strategic value of the partnership.
She noted that as the group collaborates with the Banque de France to transition the NEU CP market toward DLT, this project provides an opportunity to explore how USD settlement mechanisms can develop in tandem.
Tokenizing NEU CP, she explained, is expected to deliver more efficient funding conditions for issuers while supporting greater overall market liquidity.
Jean-Marc Stenger, CEO of Societe Generale-FORGE, emphasized the broader significance for financial infrastructure.
He described the collaboration as evidence of the expanding role of digital cash solutions in updating traditional market systems.
By utilizing the MiCA-compliant USD CoinVertible stablecoin, the partners aim to improve efficiency and resilience in cross-currency environments while ensuring full alignment with regulatory requirements and market expectations.
The NEU CP market serves as a critical channel for short-term borrowing and investment in Europe.
Moving aspects of it onto DLT platforms promises faster processing, reduced operational risks, and enhanced transparency through automated, immutable records.
Introducing regulated stablecoins for the USD segment could help maintain seamless multi-currency functionality as the euro leg advances under Project Pythagore.
Market participants anticipate that such innovations will help bridge traditional finance with emerging digital asset capabilities.
By maintaining high standards of regulatory compliance and operational robustness, the Euroclear–SG-FORGE project positions the industry to explore practical applications of stablecoins in wholesale settlement while supporting continued liquidity and competitiveness in short-term funding markets.
The collaboration is currently in an exploratory phase, with both organizations focused on rigorous testing and evaluation before any potential wider implementation. This measured approach reflects the priority placed on security and regulatory alignment in the evolving landscape of tokenized finance.