There is also a solution without the need to use URL.createObjectURL() which might be troublesome or not available in some cases.
You can use an alternative 'URL' with base64 encoded svg:
var svg = '<svg width="400" height="110"><rect width="300" height="100" /></svg>';
icon.url = 'data:image/svg+xml;charset=UTF-8;base64,' + btoa(svg);
JavaScript (Firefox) btoa() is used to get the base64 encoding from the SVG text. Your may also use http://dopiaza.org/tools/datauri/index.php to generate base data URLs.
Here is a full example:
<!DOCTYPE html>
<html>
    <head>
        <meta http-equiv="content-type" content="text/html; charset=UTF-8" />
        <script src="http://maps.google.com/maps/api/js?sensor=false" type="text/javascript"></script>
    </head>
    <body>
        <div id="map" style="width: 500px; height: 400px;"></div>
        <script type="text/javascript">
            var map = new google.maps.Map(document.getElementById('map'), {
                zoom: 10,
                center: new google.maps.LatLng(-33.92, 151.25),
                mapTypeId: google.maps.MapTypeId.ROADMAP
            });
            var template = [
                '<?xml version="1.0"?>',
                    '<svg width="26px" height="26px" viewBox="0 0 100 100" version="1.1" xmlns="http://www.w3.org/2000/svg">',
                        '<circle stroke="#222" fill="{{ color }}" cx="50" cy="50" r="35"/>',
                    '</svg>'
                ].join('\n');
            var svg = template.replace('{{ color }}', '#800');
            var docMarker = new google.maps.Marker({
                position: new google.maps.LatLng(-33.92, 151.25),
                map: map,
                title: 'Dynamic SVG Marker',
                icon: { url: 'data:image/svg+xml;charset=UTF-8;base64,' + btoa(svg) }
              });
        </script>
    </body>
</html>
Additional Information and an other solution using InfoBox can be found here.
Although this answer might be too late for you, it might help others looking for a solution to the same problem.