Société Générale Issues Security Token On Tezos Blockchain

The third-largest bank in France and the 17th largest bank in the world, Société Générale has issued its first structured product as a security token on Tezos blockchain. The issuance of security tokens by one of Europe’s largest investment banks marks a significant milestone in its efforts to offer full-spectrum cryptocurrency market services by next year.

Société Générale Issues Security Token On Tezos Blockchain

Banking giant Societe Generale has issued the first structured product as a security token on the Tezos public blockchain.

The issuance has been performed in accordance with the best market practices showcasing the regulatory, operational, and legal feasibility of issuing complex financial instruments on public blockchains.

“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.” reads the announcement release.

The banking group through its subsidiary, Société Générale Forge is further planning to issue tokenized securities that could be integrated with legacy banking systems.  Apart from asset tokenization, the bank’s cryptocurrency services will include institutional exchange and custody services.

The announcement release further adds:

“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.”

Société Générale’s Foray Into Decentralization

Société Générale’s recent security token issuance follows closely in the footsteps of the first covered bond Security Token issuance worth EUR 100 million on the Ethereum blockchain in April 2019.

A year later the bank issued its second tokenized 40-million-euro bond settled in CBDC issued by Banque de France.

Earlier this month, Société Générale was among a group of global banks hired by the European Investment Bank to utilize blockchain technology in digital bond issuance.  While Europe is yet to arrive at clearer regulations for crypto and blockchain, Société Générale is one of many financial institutions in the region experimenting with the nascent technology.

Tezos’ native asset, XTZ is currently trading at $6.98 at the time of writing.