The European financial company Société Générale has issued a security token for the Tezos blockchain.
According to an announcement on Thursday, the move will be the first token asset offered by Société Générale.
The bank said the security token offering was a key milestone in its efforts to enter the full-spectrum cryptocurrency market business by 2022.
According to reports, Société Générale, through its subsidiary Société Générale – Forge, plans to issue securities with tokens that can be integrated into existing banking systems. In addition to asset tokenization, the bank’s crypto foray also includes exchange and custody services for institutional customers. The bank stated:
“This new experiment, conducted in accordance with best market practice, demonstrates the legal, regulatory and operational feasibility of issuing more complex financial instruments (structured products) on the public blockchain.”
The first security token issuance is the third year in a row that crypto and blockchain products have been introduced from the stables of Société Générale.
As early as 2019, the bank had issued a 100 million euro bond as a security for Ethereum through its specialized credit institution Société Générale SFH.
In May 2020, SFH and SG Forge, together with Banque de France, issued a 40 million euro bond that was settled using an experimental digital currency from the central bank.
Indeed, Société Générale is one of the financial institutions recruited by the French Central Bank to carry out its pilot experimental study on the central bank’s digital currency.
In early April, Société Générale was part of a group of global banks commissioned by the European Investment Bank to use blockchain to issue digital bonds.
While the European Union has not yet enacted final regulations on crypto and blockchain, Société Générale is one of many financial institutions in the region experimenting with the novel technology.