French Bank issues Security tokens on Tezos

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Tezos ‘ own token XTZ rose to a new all-time high today after Société Générale reported on its latest experiment

The European investment bank Société Générale, often referred to as SocGen, announced yesterday that it has issued the first structured product registered in the form of a security token on the public Tezos blockchain.

For the company, this is not simply a trip into the world of cryptocurrencies, but part of the digital transformation that has seen the bank explore blockchain and distributed ledger technologies in recent years to design more innovative business models for its customers.

The regulated subsidiary of the Société Générale Group, Société Générale – Forge provides issuers and investors services for the issuance and management of digital-native financial products that are registered on the Blockchain. The aim is to provide services for the structuring, issuance, trading and custody of crypto assets for professional customers by 2022.

Forge’s previous successes in the crypto sector include issuing the first Pfandbrief as a security token on a public blockchain in 2019 and issuing a bond worth 40 million euros, which was settled with digital central Bank money (CBDC). Also last year, Société Générale – Forge and Ethereum software company ConsenSys developed a joint solution to conduct CBDC tests for Banque du France.

This latest innovation demonstrates the suitability of public blockchains for the issuance of more complex financial instruments. The increased speed and transparency of transactions and settlements, the reduction of costs and number of middlemen, the shortened time-to-market, the automated capital measures and the greater capacity for product structuring that blockchain technology offers make financial transactions more efficient and smooth. The security tokens issued by Société Générale – Forge can also be integrated into traditional banking systems that use the SWIFT network.

SOCGEN’s previous issuance of Pfandbriefe as security tokens was made on Ethereum. Tezos is another programmable platform based on smart contracts that can host assets and applications. As a proof-of-stake blockchain, however, Tezos is upgradable and can adapt to new technological innovations. This could be the reason why Société Générale – Forge chose them for their latest experiment.

The Tezos token (XTZ) has risen sharply as a result of the news. Since the end of February, XTZ has been on an upward trend, reaching a new all-time high of $ 7.48 today.