EUR CoinVertible (EURCV), a new stablecoin centered in Europe, will be market-made by Flowdesk, according to an announcement made by Societe Generale’s (GLE) Forge.By functioning as a middleman to ease trades between buyers and sellers and ensure more seamless and effective transactions, market making contributes to liquidity in financial markets.The absence of market makers would result in periods of extreme price volatility since it could be difficult to locate a buyer or seller for a particular financial instrument at a given time and price.
“Looking ahead as we approach 2024, we envision a transformative impact where compliant blockchain-based operations by institutions will drastically increase in volume – and this is what we have been preparing since the inception of Flowdesk,” Guilhem Chaumont, CEO and co-founder of Flowdesk, said in a release.
According to the statement, Flowdesk is one of the chosen organizations approved by SG-FORGE to trade EURCV. As a market maker, Flowdesk will be responsible for providing liquidity for EURCV-EUR and EURCV-USDT trading pairs on Bitstamp and other platforms.Although not the original stablecoin with a euro value, EURCV is the first with significant institutional backing. On-chain data indicates that although Circle and Tether have both introduced Euro stablecoins, their trade volumes are rather low.