Euroclear and SG-FORGE Explore Stablecoin Settlement for USD NEU CP

Euroclear and Societe Generale-FORGE are collaborating to evaluate the use of the MiCA-compliant stablecoin USD CoinVertible for the settlement of tokenized USD-denominated Negotiable European Commercial Paper (NEU CP). This initiative addresses a critical gap in the European market, where current DLT-based settlement models for NEU CP are primarily limited to euro-denominated instruments settled in central bank money. By testing a regulated stablecoin for USD transactions, the project aims to determine if digital cash can provide a secure, efficient settlement asset for non-euro instruments without compromising institutional safety standards. This effort complements the existing Project Pythagore, which focuses on EUR-denominated NEU CP, by exploring how to extend DLT benefits to multi-currency funding markets. The collaboration highlights the evolving role of MiCA-compliant stablecoins as potential tools for institutional capital markets rather than just crypto-native assets. Success in this assessment could establish a reference model for tokenized money market instruments, potentially reducing operational friction and improving transparency in short-term debt markets. While the project remains in an exploratory stage with no set timeline, it signifies a shift toward solving specific, practical settlement challenges in the transition to distributed ledger technology.