Societe Generale Launches an Ethereum Trial

Societe Generale Launches an Ethereum Trial

The primary goal for the transaction was to investigate efficient ways for bond issuance.

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One of Europe top financial services group, Societe Generale, through its subsidiary Societe Generale SFH, has launched a financial project in partnership with Societe Generale FORGE. This special credit institution issued 100 million euros ($112 million) in the form of security tokens on Ethereum (ETH) blockchain. This was announced through the Groups website on 23 April 2019.

The primary goal for the transaction was to investigate efficient ways for bond issuance. Ways that would foster transparency and faster transferability and settlements. Through this exercise, the company announced about the product and what it proposes which is to reduce the intermediaries involved and the new and standardized ways of bond issuance.

To help demonstrate the fact was the use of Societe Generale FORGE which is an intrapreneurial program developed by the Group as an internal startup call.

Similarly, in a separate venture launched in the previous year during the month of September, Societe Generale launched Komgo SA which is a new blockchain-based platform for financing the trading of commodities making it one of the major financial organizations to launch such an initiative.

These ventures are supposed to digitize trade and commodities finance processes.

Furthermore, in a trade made in April of the previous year, Societe Generale is expected to profit from stocks traded by its privately owned bank, Kleinwort Hambros. The bank launched an exchange-traded note made up of blockchain related companies that are reported to include 20 companies through the adoption of blockchain and distributed ledger technology.

According to the head of digital market assets at Credit Suisse, Emmanuel Aidoo, Financiers have no desire to change the status quo and are the ones who are holding back the adoption of blockchain technology. He further argues that the unwillingness is because of the culture embraced by the banks and not the immaturity of the technology and the lack of a potential case of its use within financial organizations.