The European financial colossus Société Générale has issued a security token on the Tezos blockchain.
According to an announcement on Thursday, the move will be the first tokenized asset to be offered by Société Générale.
The bank stated that the security token offering was a significant milestone in its efforts to begin full spectrum cryptocurrency market activity by 2022.
Société Générale through its subsidiary Société Générale – Forge, or SG Forge, is reportedly planning to issue tokenized securities that can be integrated with existing banking systems. Aside from asset tokenization, the bank’s crypto foray also includes exchange and custody services for institutional clients. The bank stated:
“This new experiment, conducted 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 first security token issue marks the third consecutive year of developments in crypto and blockchain adoption by Société Générale’s stables.
In 2019, the bank issued a 100 million euro bond through its specialist credit institution – Société Générale SFH – as a tokenized security on Ethereum.
In May 2020, SFH and SG Forge, together with the Banque de France, issued a 40 million euro tokenized bond, settled using an experimental central bank digital currency.
Société Générale is indeed one of the financial institutions approached by the central bank of France to conduct its experimental CBDC pilot study.
Earlier in April, Société Générale was one of a group of global banks hired by the European Investment Bank to use blockchain to issue digital bonds.
While the European Union has not yet come to final regulations for crypto and blockchain, Société Générale is one of the many financial institutions in the region that are experimenting with the new technology.