00:00What does a bank issued stablecoin prove? What's the use case for it in this kind of market?
00:09Yes sure. Good morning and thank you for having me. So indeed Susté General Forge is the crypto asset
00:15arm of Susté General, the French bank. And we are developing actually a full range of services in the
00:21crypto asset space. And in that context it appears very crucial for us but also for our clients to be
00:27able to propose some cash solution on chain and the reason for us to develop this stablecoin, the euro
00:36convertible and the USD convertible. We have seen lately a very nice uptick on the euro side with Mika
00:45you know shaping the crypto landscape very quickly in Europe. We see very high demand for that. We are
00:51not turning also to dollar precisely to accommodate broader use cases but also to
00:57prepare I think for what is coming in the U.S. with the genius act notably which we think will
01:04dramatically
01:04reshape this market globally. And to your question I think that's also why we are very pushy at the moment
01:12on
01:12this. We think it's a very young market still. Indeed there are already a few players which are very large
01:19in that
01:20space. But it's a very young market actually. It's a young market for institutions. Clients we see from the corporate
01:28side or more institutional clients are only turning to stablecoin solution at the moment. So beyond the historical use
01:35cases we have all seen in the crypto space. I think there is much more to come from the client
01:43side and that's where we want to
01:44position ourselves. Jean-Marc perhaps you just answered this question when you talk about what a young market it is.
01:48It is. But I think a lot of
01:50people when they think of stablecoins they think of circle. They think of tether. What does a bank issue stablecoin
01:55though provide that
01:56that those don't. Well first I think we should recognize that regulation is only coming to this
02:05market. No. And that's why I'm saying it's a young market. And regulation is fueling a full range of new
02:13demand and
02:14services in that space. So bank I think in this environment is very credible and a very natural player for
02:22clients to accommodate
02:25existing use cases and existing needs. We are serving in this context. Again payments for instance. Clients are turning very
02:34naturally to
02:35their banks to process payments. Yeah. I think as a bank and as the crypto arm of a bank we
02:41need to provide innovative solution in
02:44that field. And again that's why we are promoting these stablecoin solutions at the stage of our forum. But you're
02:50definitely in
02:50competition with U.S. companies like Circle. I wonder how the U.S. government views a European bank issuing dollar
02:57stablecoins. Have you been pushed on that
03:01question. Actually it's a global market. So indeed already very large U.S. players. I think there is room in
03:10the market for a very large
03:11European players and we are definitely positioning ourselves as a credible and reference stablecoin issuer in Europe with ambitions which
03:22are global.
03:23Again it's a global market. Clients need both USD and euro stablecoins. And clients need I think European issuer in
03:32that space. So I mean clients will decide and competition will happen in the market like everywhere.
03:40Again you know regulated environment which is emerging with Mika in Europe and with Genius in the U.S.
03:46On stablecoins. What level of demand are you seeing from from clients right now. What are some of the use
03:51cases. Why you know that. And why are they using it and not tokenized
03:56deposits. Yeah. The demand we see at the moment at Social General Forge is coming from the crypto native players
04:06which are active in Europe. Mika is in place for a bit more
04:11than a year. No. No. It's definitely reshuffling reshaping the market. We see a demand emerging for euro stablecoins which
04:19which was not the case probably a year ago.
04:22So I would say our core domestic market is definitely Europe and Mika regulated stablecoins in euro. But again the
04:30same clients and new clients we see coming to
04:33this payment solutions. Corporate financial institutions do require as well USD payment tool like USD stablecoin. And again that's why
04:44we have decided to expand
04:45the reach of our stablecoin to tell you through this partnership with MetaMask. But you are also now going for
04:52other use cases. I'm thinking for instance
04:54to collateral management and margin calls which is a very important need for institutions. And that's why we are developing
05:02ourselves.
05:02Yeah. Beyond the first use cases we have been promoting. Jean-Marc if we're still sitting here in three years
05:09time and still talking about tokenization and digital assets in a more theoretical way as opposed to a practical way
05:17a concrete way. They haven't really scaled in banking in particular. What do you think will have gone wrong in
05:21that scenario.
05:24I think it's it's happening. I don't think anything is going wrong. We see a lot of concrete projects with
05:32clients and clients.
05:32counterparts. For instance on our end we start building solutions with real counterparts when it comes to collateral management. And
05:43that's also developments we see at scale happening now.
05:46I think it's just the ramp up which is starting. I know the market has been talking about that for
05:51a while. But from what we see and the discussions we see with clients is happening for real.
05:57people
05:57people
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