SocGen’s security tokens admitted in Luxembourg as markets adopt blockchain

Rick Steves

The digital covered bonds were issued and deployed by Societe Generale’s digital assets arm natively on the Ethereum and Tezos public blockchains.

Interbank FX institutions experience collapsing share prices

Societe Generale has announced the admission of three series of security tokens on the Luxembourg Stock Exchange (LuxSE) in an unprecedented move on the country’s exchange operator.

These are the very first financial instruments registered on a public Distributed Ledger Technology (DLT) on LuxSE’s Securities Official List.

The three security tokens are digital covered bonds (OFH Tokens) and structured products that have been issued and deployed by Societe Generale’s digital assets arm, Societe Generale – FORGE (SG – FORGE), natively on the Ethereum and Tezos public blockchains respectively.

Characterized as financial instruments and debt securities under French law, the OFH Tokens are compliant with the CAST[i] open-source interoperability and securitization framework.

Adoption of the EU Pilot Regime

The listing of SocGen’s issued and deployed digital covered bonds is part of the adoption of blockchain technology within the finance industry. Market digitalization is accelerating notably through the imminent adoption of the EU Pilot Regime, which is expected to enter into force in 2022.

The new regime will allow the processing of security tokens through market infrastructures in compatibility with applicable EU regulations within a transitional period.

Native security tokens have the potential to significantly improve efficiency and transparency in financial markets and make transactions safer and more resilient.

Julie Becker, CEO of LuxSE, said: “The admission of security tokens on the Luxembourg Stock Exchange Securities Official List represents a true milestone for EU financial markets as it provides for a unique, innovative, robust, and publicly accessible solution for issuers and investors of these instruments.

“This constitutes yet another significant step towards the digital transformation of the Luxembourg Stock Exchange, and a very first building block in our contribution towards price discovery and transparency of financial instruments issued using DLT. We are delighted to welcome Societe Generale, a leading institution in the DLT space, as the first issuer of security tokens at our exchange and are confident that other issuers will follow suit as more and more market participants capitalize on this disruptive technology.”

Arnaud Jacquemin, CEO of Societe Generale Luxembourg, said: “Leveraging on the differentiating expertise of the SG – FORGE teams, our intimate knowledge of the Luxembourg capital market environment and our close relationship with LuxSE, this first-ever listing shows our institutions’ capacity to step-by-step implement a truly innovative technology, thus helping build tomorrow’s global capital market distribution approach and infrastructure”.

SocGen has been active in the distributed ledger technology space via subsidiary SG – FORGE as the specialist in digital assets and structured several native security tokens recently helped the European Investment Bank’s (EIB) with an issuance of a 100m€ digital bond in 2021.

 

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<