French multinational investment bank issues security tokens based on Ethereum blockchain

Societe Generale SFH, a subsidiary of Société Générale [SocGen], a French multinational investment bank and financial services company, issued security tokens worth €100 million, based on the Ethereum blockchain, its official website reported. According to a statement released on April 23, these security tokens were issued by the bank on April 18.

Notably, this is not the first time the multinational bank has ventured into the blockchain space. The Societe Generale Group has been a part of the space for a few years now, with their involvement in projects such as we.trade and komgo SA.

The official announcement read, {Translated from French}

“[…] issued EUR 100 million of covered bonds in the form of “security tokens” (home financing bonds or “OFH”) directly registered on the Ethereum blockchain. Tokens OFH were rated Aaa / AAA by Moody’s and Fitch and were fully subscribed by Société Générale.”

The blog further stated this issuance was part of Société Générale’s “pilot project” and was one of the firms that were part of its Internal Startup Call firms. The startup in question was noted to be Société Générale FORGE, which focuses on providing various blockchain-based solutions.

The blog read,

“This transaction makes it possible to explore a more efficient bond issue circuit. The benefits are numerous: […] increased transparency, faster securities transfer and settlement. It also makes it possible to offer a new standard for issue and trading in the secondary market and to reduce the costs and the number of intermediaries.”

Further, this entire issuance was carried out by the bank with the participation of its financial, legal, compliance, and operations team. Société Générale SFH’s legal procedures would be managed by Gide Loyrette Nouel, and one of the big fours, PwC, will also be playing a crucial role in the firm.

“Innovation is at the heart of Société Générale’s DNA. It is a priority axis of its “Transform to Grow” strategic plan. The Group’s digital transformation is accelerating by using new technologies to innovate and better serve its customers.”

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