On April 15th 2021, Societe Generale issued the first structured product* as a Security Token directly registered on the Tezos public blockchain. The securities were fully subscribed by Societe Generale Assurances.
This operation follows in the footsteps of two previous blockchain-based bond issuances:
- a first covered bond Security Token issuance worth EUR 100m on the Ethereum blockchain, settled in euros in April 2019, and
- a second covered bond Security Token issuance worth EUR 40m this time settled in Central Bank Digital Currency (CBDC) issued by Banque de France, in May 2020.
This transaction completes a new step in the development of Societe Generale – Forge, a regulated subsidiary of Societe Generale Group, aiming at offering by 2022 crypto assets structuring, issuing, exchange and custody services to the Group’s professional clients.
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.
Societe Generale – Forge innovative operating model enables Security Tokens to be directly integrated to conventional banking systems interfaced with SWIFT format.
Innovation is key to Societe Generale Group’s digital transformation. The Group has been involved for several years in numerous initiatives based on blockchain and distributed ledger technologies, using the most innovative technologies and creating disruptive business models, with the aim of better serving its clients.
*Autocall, Euro Medium Term Notes (EMTN), EUR 5m
Astrid Fould-Bacquart – +33 1 56 37 67 95 – email@example.com