Societe Generale has just announced the first “structured product” as a security token registered on the Tezos Blockchain. The securities are fully subscribed by Societe Generale Assurances.
Societe Generale has already dipped its toes in the blockchain/cryptocurrency sector with its bond security token issuance worth 100 million euros on the Ethereum blockchain in April 2019. A second covered bond security token issuance was also made in May 2020, but this time settled in CBDCs.
Forge, a regulated arm of Societe Generale Group, is aiming to offer crypto assets structuring, issuing, and exchange and custody services to its professional clients.
This subsidiary of Society Generale is experimenting with best market practices to develop the legal, regulatory and operational feasibility of offering more complex financial instruments (structured products) on public blockchain.
Forge is looking to leverage blockchain to increase the efficiency and fluidity of financial transactions, including: unprecedented capacity of product structuration, shortened time to market, automated corporate actions, increased transparency, speed in transactions and settlements, and a reduced cost and number of intermediaries.
Tezos will provide the institutional safety and code correctness for the high value use case required by Societe Generale – Forge. Its smart contract language, Michelson, can be used in mission-critical environments such as the aerospace and nuclear industries.
“Security focused. Upgradable. Built to last.”
With its proven track record, Tezos is redefining what it means to hold and exchange value in a digitally connected world. Constantly adopting and adapting innovations, Tezos’ self-upgradeable blockchain is perfect for large institutional enterprises.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.