European financial behemoth Societe Generale has issued a security token on the Tezos blockchain.
According to an announcement on Thursday, the move constitutes the first tokenized asset offered by Societe Generale.
The bank stated that the security token offering was a significant milestone in the efforts to begin full-spectrum cryptocurrency market operations by 2022.
Societe Generale, through its subsidiary, Societe Generale – Forge, reportedly plans to issue tokenized securities that can be integrated with legacy banking systems. Apart from asset tokenization, the bank’s crypto foray will also include exchange and custody services for institutional clients. The bank stated:
“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.”
The maiden security token issuance marks the third consecutive year of crypto and blockchain adoption developments from the stables of Societe Generale.
Back in 2019, the bank, via its specialized credit institution Societe Generale SFH, issued a 100-million euro bond as a tokenized security on Ethereum.
In May 2020, SFH and SG Forge, together with the Banque de France, issued a tokenized 40-million-euro bond, settled using an experimental central bank digital currency.
Indeed, Societe Generale is one of the financial institutions tapped by France’s central bank to conduct its experimental central bank digital currency pilot study.
Earlier in April, Societe Generale was among a group of global banks hired by the European Investment Bank to utilize blockchain in digital bond issuance.
While the European Union is yet to arrive at definitive regulations for crypto and blockchain, Societe Generale is one of many financial institutions in the region experimenting with the novel technology.
