European Banking Giant, Société Générale, Issues Security Token On Tezos Blockchain
One of the largest financial institutions in Europe, Société Générale, is continuing its blockchain and crypto exploration by offering tokenized securities running on the Tezos blockchain network.
Sharing in a press statement, this is the first tokenized asset offered by the institution. The security token issuance marks an imperative milestone for the bank in its focus to start a full-spectrum crypto business unit by next year.
In preparation to kickstart crypto market operations by next year, Société Générale has launched a subsidiary dubbed Forge that will offer tokenized security that can be connected with its legacy banking platforms. Besides issuing tokenized securities, the bank also plans to offer exchange and custodial services, but they will focus on institutional customers and not retail.
The bank also explained that the new tokenized security was offered after meeting all legal and regulatory requirements.
“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 a public blockchain.”
With the current security offering, this is the third year in a row that Société Générale has adapted blockchain developments and solutions to fit growing demand.
In May of last year, SFH and Forge, in collaboration with the French central bank, offered another 40 million euro bond that was tokenized and settled through the yet to be made public central bank digital currency (CBDC).
Société Générale is one of the financial institutions that Banque de France has earmarked to participate in a pilot for a central bank digital bank (CBDC) project.
Early this month, Société Générale was one of the banks which European Investment Bank tapped to utilize blockchain technology while issuing digital bonds.
Although the European Union has not yet agreed on crypto regulations for the region, Société Générale is still pursuing the operationalization of the crypto business unit.