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French Banking Giant Société Générale Issues The First Structured Product On The Tezos Blockchain

Société Générale

Société Générale are the 3rd biggest bank in France by assets and the 7th biggest in Europe. They have over 146,000 employees and turnover over €23 billion. They have previously been involved with Tezos on two other occasions.

They had worked with Tezos to test the implementation of a potential CDBC for Banque De France experiments.

They had also been involved in the EURL Lurg stablecoin being developed by a consortium including retail giant Casino Group, where the bank would be storing the stablecoin.

Société Générale & Tezos Tokenization

It was announced today in a press release by Société Générale that they would be issuing the first structured product on the blockchain, the blockchain of choice would be Tezos.

It was stated in the press release that:

This operation follows in the footsteps of a first covered bond Security Token issuance worth EUR 100m  on the Ethereum blockchain, settled in euros in April 2019, and of 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.

A unique aspect of the Société Générale – Forge innovative operating model is that it enables security tokens to be ‘directly integrated to conventional banking systems interfaced with SWIFT format.’

From Ethereum Experimentation To Tezos

This latest development comes after Société Générale had previously issued a:

…a first covered bond Security Token issuance worth EUR 100m  on the Ethereum blockchain, settled in euros in April 2019, and of …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.

The latest development where Société Générale are using the Tezos blockchain ‘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.’

It is thought that this transaction completes a new step in the development of Société Générale – 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.