SocGen issues first structured product on public blockchain

Societe Generale announced it’s issued Autocall Euro Medium Term Notes (€5mn) as a security token directly registered on the Tezos public blockchain. The securities were fully subscribed by Societe Generale Assurances.

“This new experimentation, performed in accordance with best market practices, demonstrates the legal, regulatory and operational feasibility of issuing more complex financial instruments (structured products) on public blockchain. It leverages on this disruptive technology which enables increased efficiency and fluidity of financial transactions: unprecedented capacity of product structuration, shortened time-to-market, automated corporate actions, increased transparency and speed in transactions and settlements, as well as reduced cost and number of intermediaries,” according to a SocGen statement.

Previous developments include: the first covered bond security token issuance worth €100 million on the Ethereum blockchain, settled in euros in April 2019; and a second covered bond security token issuance worth €40 million, this time settled in Central Bank Digital Currency (CBDC) issued by Banque de France, in May 2020.

The latest transaction completes a new step in the development of Societe Generale – Forge, a regulated subsidiary of Societe Generale Group, aiming at offering by 2022 crypto assets structuring, issuing, exchange and custody services to the Group’s professional clients. The operating model enables security tokens to be directly integrated to conventional banking systems interfaced with SWIFT format.


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