Categories: Ethereum

French Giant SocGen Chose Ethereum for its Digital Token Experiment

Click here to view original web page at cryptonews.com
Source: iStock/AdrianHancu

Major traditional financial companies are quietly experimenting with digital tokens. This time, it's French giant Societe Generale Group (SocGen.)

In April, Societe Generale SFH, a subsidiary of SocGen, sold EUR 100 million, or USD 112 million, of covered bonds (debt backed by mortgages) in the form of digital tokens – to itself. This could be huge news for digital assets.

The bond was issued as a security token on the Ethereum (ETH) blockchain, and earned the highest credit rating from Moody’s Investors Service and Fitch Ratings, according to SocGen. The company is one of Europe's largest financial services organizations, with almost USD 2 trillion in assets, and 31 million customers in 67 countries.

Societe Generale FORGE, an internal startup launched through the bank’s intrapreneurship program, the Internal Startup Call, used this transaction in order to test if and how the crypto technology can be utilized for a more efficient way to issue bonds, to cut costs, improve product scalability, reduce time to market, and speed settlement for the securities. "This startup experiments disruptive business solutions using blockchain technology to develop new digital capital market activities,“ SocGen said.

Even though traditional finance firms are mostly mistrustful of digital tokens, crypto evangelists predict a wider use of security tokens offerings (STO). On the other hand, to the sceptics, STOs are just a way to inflate the crypto bubble.

“The proliferation of tokenization within finance will occur, but don’t expect to see it go mainstream anytime soon,“ Romal Almazo, who leads the crypto and blockchain practice at Capco, a financial-technology consultancy, told Bloomberg.

As reported, the STO market is estimated to grow this year, but at a steady rate - and the explosion might come some time until 2021, according to Carlos Domingo, founder and CEO of security token platform Securitize.

Richard Kemmish, the former head of covered bond origination at Credit Suisse Group AG, in an interview with Bloomberg asked "whether we are really ready for this":

"One of the things that SocGen seem to have emphasized is improving settlement and clearing, but I’m not really sure how much of a problem or expense they are actually avoiding.’’

In either case, SocGen is no stranger to crypto-related projects. On April 18th, they’ve made an announcement that their we.trade, a blockchain-based trade finance platform, is now available to their clients in France. The bank calls it “the most advanced platform for digitalizing, securing and financing corporate trades”, which was produced in collaboration with tech giant IBM.

Furthermore, last September, SocGen was a part of the joint venture established by fifteen international financing, trading, and production institutions, called komgo SA, developed in partnership with the Ethereum-focused blockchain software technology company ConsenSys. The new platform is based in Geneva, Switzerland and aims to digitalize trade and commodities finance processes, while improving transparency and reducing the risk of fraud.

In April, Societe Generale SFH , a subsidiary of […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Who’s Trading Bitcoin? A Look at Trading Volume by Country in 2019

If you look for statistics on bitcoin trading volume by country, you may be surprised to learn that there is… Read More

43 mins ago

PR: Kinesis Partners With Hardware Wallet Provider CoolbitX

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material.… Read More

43 mins ago

FT Compares Bitcoin Salaries to De Facto Slave Labor

Getting paid in bitcoin? You should be offended, apparently. | Source: Shutterstock; Edited by CCN By CCN Markets : In… Read More

43 mins ago

How blockchain is revolutionizing recruitment

There is no denying that blockchain technology has the potential to completely revolutionize most – if not all – industries… Read More

43 mins ago

Bitcoin Price ‘Will Struggle’ in Big Financial Crisis, Says Investor

Spencer Bogart, a general partner at venture capital firm Blockchain Capital, thinks that Bitcoin ( BTC ) will be a… Read More

45 mins ago

Pompliano: Bitcoin Will Be In Every Institutional Investor’s Portfolio

American investor and Morgan Creek Digital Assets co-founder Anthony Pompliano says that Bitcoin will end up in every institutional investor’s… Read More

45 mins ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More