French financial services giant Societe Generale Group has issued a 100 million euro ($112 million) on the public Ethereum blockchain as a form of a security token. The news was published on the company website on April 23.
A subsidiary of Societe Generale Group, the Societe Generale SFH, introduced its very first collaboration product with Societe Generale FORGE – “one of the 60 internal startups launched via the Internal Startup Call, the Group’s intrapreneurial programme,” the company said.
The transaction aims to find a way to optimize bond insurance, which would provide better transparency, and faster transferability and settlement. The company claimed in the announcement that the product “proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries.”
The project was issued EUR 100m of covered bonds (“obligations de financement de l’habitat” or “OFH”) as a security token, registered directly on the Ethereum blockchain.
Last September, Societe Generale was one of the major financial firms to launch a joint venture. This aimed to supervise a new blockchain-based platform for supporting the trading of assets.
Earlier in April, Societe Generale owned private bank Kleinwort Hambros introduced an exchange-traded note made up of blockchain-related companies. Investors come from 20 different companies, which are expected to gain from blockchain and distributed ledger technology adoption.