French banking giant Société Générale expects a sharp acceleration in stablecoin adoption across traditional finance (TradFi) in the coming months, as trading
volumes rise and institutional use cases expand.
Recent growth in activity is beginning to translate into broader engagement from TradFi institutions, Jean-Marc Stenger, chief executive of Société Générale’s digital asset unit Forge, said at ETHCC in Cannes, France.
The bank has developed its own euro-denominated stablecoin, and Stenger said that volumes have been steadily rising towards an inflection point.
“We believe there will be a massive acceleration of this trend toward the end of the year and the beginning of next year, with true adoption within TradFi of this first asset coming from the crypto industry, which is the stablecoins.”
The comments reflect growing confidence among European banks that stablecoins are moving beyond crypto-native use cases and into mainstream financial infrastructure.
European banks push regulated alternatives
Société Générale is positioning itself at the centre of that shift through Forge, which has launched both euro- and dollar-denominated stablecoins under the European Union’s Markets in Crypto-Assets (MiCA) framework.
The bank aims to establish its euro stablecoin as a reference product in European markets, at a time when the sector is dominated by US dollar-backed issuers.
Stenger said the initiative reflects a broader strategic push by the group to offer regulated digital assets to both crypto-native clients and traditional financial institutions.
“It’s a strategic commitment of the group, and we feel there is a place in the market for a well-regulated and robust offer from a tier one banking group,” he said.
He added that demand for alternatives is growing as clients seek more transparent and institutionally backed options.
“The market is highly concentrated today. We see a need from clients in the crypto space for robust alternatives, and we think it is legitimate for a banking group like Société Générale to meet that demand.”
Yield issue
Stenger also pointed to emerging policy discussions in Brussels that could shape the next phase of stablecoin adoption.
EU policymakers are considering whether to revisit elements of MiCA, including restrictions that prevent stablecoin issuers from passing on interest generated from reserve assets to token holders.
He said investor demand for yield is clear but suggested the solution may not lie in directly modifying the current framework.
“I think the solution won’t come from simply allowing stablecoin issuers to share interest,” he said.
Instead, he pointed to decentralized finance (DeFi) as a potential mechanism for
generating returns, drawing a parallel with traditional banking, where interest is
offered through separate products rather than the cash itself. DeFi is a critical part of the digital economy and allows users to perform financial activities onchain without any intermediaries.
Stenger said Société Générale is exploring ways to integrate its stablecoins into lending and borrowing protocols to support yield-generating use cases.