French financial services giant Societe Generale has launched security tokens on public blockchain Tezos as part of its ongoing experiments with advanced fintech applications.
The latest decision reflects the bank’s efforts to end cryptocurrency mining in its ecosystem.
In its latest milestone in the blockchain arena, French multinational bank Societe Generale has issued its first-ever structured product token. The token, a Euro Medium Term Note (EMTN) worth 5 million euros, is the bank’s first step towards asset tokenization. The insurance arm of Societe Generale Assurance Bank has fully subscribed to the security token’s sales offers.
This latest development follows other work already undertaken by the bank through its regulated subsidiary, Société Générale – Forge. Following the issuance of its first covered bond of 100 million euros on the Ethereum blockchain in 2019, the bank also manages another covered bond of 40 million euros to be settled in 2020 with the CBB of the Bank of France.
The open public blockchain security brand Tezos reflects the growing role of this disruptive technology platform as it is able to make operations more efficient and profitable. From a bank’s perspective, blockchain offers significant opportunities to structure assets with fewer intermediaries, in addition to greater speed and transparency.
Although blockchain technology still poses a complex regulatory challenge in the region due to the lack of clear guidelines, Société Générale has already been approached by the European Central Bank to help issue digital bonds.
As part of its efforts to enter the cryptocurrency ecosystem, the bank plans to leverage its blockchain expertise to effectively link the technology to existing financial systems integrated with SWIFT. This initiative will eventually expand to include the structuring, issuance, exchange and custody of crypto assets for the bank’s institutional clients, which is expected to start in 2022.
Do you see any benefit in disclosing complex financial instruments? Let us know your comments in the section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Les Echos.
Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of a product, service or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.
société généraletezosunii tokenuniswap worthuniswap usersuni token news,People also search for,Privacy settings,How Search works,Société Générale,Financial services company,Tezos,unii token,uniswap worth,uniswap users,uni token news,uniswap tokens,uniswap free coins