SG FORGE and Euroclear to explore USD stablecoin settlement in capital market transactions
- Tokenization Insight
- 23 hours ago
- 1 min read
SG FORGE and Euroclear to explore USD stablecoin settlement in capital market transactions.
The two firms will assess the use of USDCV, SG-FORGE's MiCA-compliant USD stablecoin, to settle tokenized USD-denominated Negotiable European Commercial Paper (NEU CP), one of Europe's key short-term funding instruments.
➡️ Why this matters
Negotiable European Commercial Paper (NEU CP) is one of Europe's largest short-term funding markets, allowing banks, corporates and public-sector entities to raise low-cost funding for working capital, payroll and other liquidity needs.
Euroclear is already working with Banque de France through Project Pythagore, a program that puts the issuance of EUR denominated NEU CP on its DLT ledger D-FMI and settles transactions in tokenized central bank money.
This collaboration extends that vision by exploring how USD-denominated NEU CP could settle using a regulated USD stablecoin instead.
➡️ Food for thought: Project Pythagore uses tokenized central bank money for EUR settlement, while this initiative explores stablecoins for USD settlement.
Although both enable near-instant settlement, they represent fundamentally different forms of money with different implications for accounting treatment, liquidity management, regulatory capital and ERP integration.
Will regulated financial institutions preface stablecoins or tokenized central bank money for securities settlement?
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