Stellar Network Expands with New Euro Stablecoin—XLM Price Impact?

• SG-FORGE launches MiCA-compliant EURCV on Stellar, enhancing cross-border payments while boosting long-term utility for the XLM ecosystem.
• XLM trades between $0.31-$0.36 amid EURCV launch; mixed technical signals hint at either a breakout to $0.49 or a potential retracement.

Societe Generale-FORGE (SG-FORGE) has launched its euro-backed stablecoin, EUR CoinVertible (EURCV), on the Stellar network. This move brings a fully MiCA-compliant digital euro to Stellar’s ecosystem, enhancing cross-border payment capabilities and financial accessibility. 

A fully compliant Euro stablecoin powered by Stellar. The Societe Generale-FORGE EUR stablecoin has arrived! https://t.co/mfWearB6HE

— Stellar (@StellarOrg) February 20, 2025

With Stellar’s scalability and low transaction costs, the deployment aims to strengthen ties between traditional finance and the digital asset economy. Analysts and investors are now monitoring potential impacts on Stellar’s native token, XLM.

SG-FORGE Deploys MiCA-Compliant EURCV on Stellar

On February 20, 2025, Societe Generale-FORGE  announced the launch of its EURCV stablecoin on the  Stellar blockchain . As one of the first euro stablecoins fully regulated by the European Union’s Markets in Crypto-Assets (MiCA) regulations, EURCV aims to bring more security, transparency, and regulatory certainty. SG-FORGE is leveraging Stellar’s fast and scalable blockchain to support high-volume, low-cost transactions for cross-border payments.

Guillaume Chatain, Chief Revenue Officer at SG-FORGE, said: “Our integration with Stellar is a key milestone to bridge traditional finance with the digital asset ecosystem.” He mentioned Stellar’s connections with asset managers and traditional finance (TradFi) institutions as the reason behind the decision.

EURCV, launched on Ethereum in 2023, is the second blockchain for EURCV. SG-FORGE plans to expand to Solana and XRP Ledger as part of its multichain strategy to make stablecoins more accessible to financial markets.

Stellar’s Blockchain Benefits for Stablecoin

Stellar’s technical advantages were a key factor in SG-FORGE choosing its platform. The network can handle thousands of operations per second, so EURCV can handle a large volume of transactions. Transactions settle in seconds, which is crucial for real-time financial applications, and transaction fees are a fraction of a cent, perfect for micropayments and cross-border transfers.

Stellar’s built-in decentralized exchange (DEX) and robust asset tokenization capabilities also enhance EURCV’s utility. The integration allows seamless trading between cryptocurrencies and fiat-backed tokens, which opens up new use cases in DeFi and Web3. Denelle Dixon, CEO of the Stellar Development Foundation, said:

The arrival of the Societe Generale-FORGE EUR stablecoin on Stellar is a big step forward for digital payments. By combining Stellar’s blockchain with a MiCA-compliant stablecoin, users have a more efficient way to transfer value across borders.

Beyond speed and cost, Stellar’s growing ecosystem includes institutional partnerships. Asset manager Franklin Templeton’s FOBXX money market fund, with approximately $392 million managed on Stellar, shows the platform’s increasing institutional adoption.

XLM Price Outlook Amid EURCV Launch

The addition of EURCV to the Stellar network has everyone talking about its impact on XLM. While long-term utility should increase demand, short-term nothing’s happening.

At the moment, XLM is up 0.02% and trading in a tight range between $0.31 and $0.36 over the past week. Despite the excitement around stablecoins, technical indicators are mixed.

The TD Sequential indicator—a popular technical analysis tool developed by Tom DeMark—just flashed a sell signal on the 4-hour chart. According to Ali, this “9” signal means trend exhaustion and possible price retracement.

The indicator has two phases: a 9-bar setup phase and a 13-bar countdown phase, both designed to anticipate price reversals. With the sell signal in play, traders are getting cautious as bullish momentum is fading.

XLM’s current price action is opposite to its performance at the end of 2024 when it reached $0.56. Over the past 30 days, it’s down 22%, trading in a symmetrical triangle on the daily XLM/USD chart.

This pattern is characterized by converging trendlines and usually means consolidation before a breakout. XLM is currently testing the upper boundary at $0.34, the triangle peak at $0.49, and the swing low at $0.31. But the RSI is below 50.00, so bullish momentum is weak.

As SG-FORGE’s EURCV launches with Europe’s push for regulated digital assets under MiCA, the stablecoin integration should boost Stellar’s ecosystem in the long term. But with mixed market sentiment and conflicting technicals, XLM is at a crossroads—either break out to $0.49 or retrace to lower levels.