French Multinational Bank Societe Generale sells $112 million worth of Ethereum bonds
As reported by Bloomberg, a division of French multinational bank, Societe Generale SA has sold 100 Million Euros ($112 million) worth of Ethereum bonds backed by mortgages to itself.
The bank had previously said that it was looking into how Distributed Ledger Technologies (DLTs) could be used to reduce costs and expedite settlement.
Tokenized securities is a fast-growing space, and several traditional assets are already being tested for the purpose, including real estate, gold, and art.
According to a former head of covered bond origination at Credit Suisse Group AG, Richard Kemmish,
“I don’t want to come across as a grumpy old luddite but I’ve got to ask 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.”
France has passed a regulation in favor of Cryptocurrencies, allowing the $2 trillion life insurance industry to offer crypto investments to its clients through specialized professional funds. France is also spending heavily on Blockchain and general tech innovation.
Cryptocurrencies are slowly making their way into the traditional financial world, with infrastructure built by Fidelity and Bakkt and tech companies like Facebook actively working on Crypto products, it is setting up for mainstream adoption.
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