Societe Generale has issued its first US digital bond using Broadridge’s newly launched tokenization capability, with DRW acquiring the bond. The bonds are short-term floating rate debt securities linked to SOFR, with the issuance likely of modest size given the amount was not announced. Nonetheless, US digital bond issuances by large organizations remain rare, requiring baby steps.
The bond was issued on the Canton Network founded by Digital Asset, which in turn was co-founded by DRW. The companies have existing relationships. Societe Generale was an early adopter of Broadridge’s Distributed Ledger Repo (DLR) solution, which processed more than $8 trillion in transactions in October. Societe Generale has also conducted intraday repo transactions with DRW on the Broadridge platform.
The security tokens were registered by Societe Generale-FORGE (SG-FORGE), the bank’s digital asset subsidiary which has been a trailblazer, posting several web3 firsts. In 2019 it helped a bank subsidiary to issue a €100 million bond on the Ethereum public blockchain. It participated in a live DeFi transaction with MakerDAO (now Sky) in 2023. And it was the first affiliate of a systemically important bank to launch a stablecoin, the Coinvertible EURCV in the same year. More recently, SG-FORGE announced that the Deutsche Börse was integrating its stablecoins for settlement and to explore usage as collateral.
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