Societe Generale Issues Structured Products as Security Token on Public Blockchain
by Fintechnews Switzerland April 19, 2021Societe Generale announced that it has issued its first structured product as a security token directly registered on the Tezos’ blockchain network.
The securities were fully subscribed by Societe Generale Assurances.
The move was in line with the development of Forge which is a regulated subsidiary of Societe Generale Group.
Forge’s operating model enables security tokens to be directly integrated to conventional banking systems interfaced with SWIFT format.
Forge aims to offer crypto assets structuring, issuing, exchange and custody services to the group’s professional clients by 2022.
This new experimentation, performed in accordance with best market practices, demonstrates the legal, regulatory and operational feasibility of issuing more complex financial instruments (structured products) on public blockchain.
It leverages on this disruptive technology which enables increased efficiency and fluidity of financial transactions; unprecedented capacity of product structuration, shortened time-to-market, automated corporate actions, increased transparency and speed in transactions and settlements, as well as reduced cost and number of intermediaries.
This operation follows in the footsteps of a first covered bond Security Token issuance worth EUR 100 million on the Ethereum blockchain, settled in euros in April 2019, and of a second covered bond Security Token issuance worth EUR 40 million this time settled in Central Bank Digital Currency (CBDC) issued by Banque de France, in May 2020.
This article first appeared on finanzprodukt.ch
Featured image credit: Societe Generale
