Société Générale (SocGen), one of Europe’s largest investment banks, today announced issuance of a tokenized euro medium-term note (EMTN) worth EUR 5 million on the Tezos blockchain. The securities were fully subscribed by Société Générale Assurances.
Société Générale Continues Crypto and Blockchain Experimentation
Société Générale stated, “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”, the investment bank said in a press statement.
Société Générale – Forge
Société Générale – Forge is a subsidiary of Société Générale Group, aiming at offering by 2022 a full spectrum of crypto offering, including crypto assets structuring, issuing, exchange and custody services to the Group’s professional clients. The bank notes that this transaction completes a new step in the development of Société Générale – Forge.
Société Générale – Forge innovative operating model enables Security Tokens to be directly integrated to conventional banking systems interfaced with SWIFT format.
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FAQ
A euro medium-term note is a medium-term, flexible debt instrument that is traded and issued outside of the United States and Canada. These instruments require fixed payments and are directly issued to the market with maturities that are less than five years. EMTNs allow an issuer to enter the foreign markets more easily to obtain capital. Firms also offer EMTNs continuously, whereas a bond issue, for example, occurs all at once.
