One of Europe’s largest investment banks issues security token on Tezos

Blockchain

Société Générale continues its crypto and blockchain experimentation by issuing a tokenized security on the Tezos network.

European financial behemoth Société Générale has issued a security token on the Tezos blockchain.

According to an announcement on Thursday, the move constitutes the first tokenized asset offered by Société Générale.

The bank stated that the security token offering was a significant milestone in the efforts to begin full-spectrum cryptocurrency market operations by 2022.

Société Générale, through its subsidiary, Société Générale – Forge, reportedly plans to issue tokenized securities that can be integrated with legacy banking systems. Apart from asset tokenization, the bank’s crypto foray will also include exchange and custody services for institutional clients. The bank stated:

“This new experimentation, performed in accordance with best market practices, demonstrates the legal, regulatory and operational feasibility of issuing more complex financial instruments (structured products) on public blockchain.”

The maiden security token issuance marks the third consecutive year of crypto and blockchain adoption developments from the stables of Société Générale.

Back in 2019, the bank, via its specialized credit institution Société Générale SFH, issued a 100-million euro bond as a tokenized security on Ethereum.

In May 2020, SFH and SG Forge, together with the Banque de France, issued a tokenized 40-million-euro bond, settled using an experimental central bank digital currency.

Indeed, Société Générale is one of the financial institutions tapped by France’s central bank to conduct its experimental central bank digital currency pilot study.

Earlier in April, Société Générale was among a group of global banks hired by the European Investment Bank to utilize blockchain in digital bond issuance.

While the European Union is yet to arrive at definitive regulations for crypto and blockchain, Société Générale is one of many financial institutions in the region experimenting with the novel technology.

Adam Back

Blockstream has announced the launch of a new security token backed by the company's mining facilities.

Canadian-based Blockchain tech company Blockstream announced the launch of a security token backed by the company's mining production on March 29.

It offers an alternative to investing in Bitcoin mining stocks, with the company providing non-US qualified investors exposure to Bitcoin mining through the Blockstream Mining Note security token. BMN represents 2,000 terahash per second of hashrate from Blockstream's mining facilities.

The Bitcoin mined for BMN will be held in cold storage for three years, and will be distributed to the final token holders at the end of that time frame.

Blockstream plans to begin BMN mining operations by July 9, with the following tranches expected to be released in the third quarter of this year.

See https://t.co/W6zlfDQRpq some more details (BMN is available to non-US qualified investors)
— Adam Back (@adam3us) March 31, 2021

The BMN security token offering, or STO, will be held on STOKR, a European investment marketplace for alternative digital assets. The first tranche of security tokens will be on offer from April 7, and are priced at roughly $240,000 each, which is also the minimum investment.

"BMN will entitle its holders to hash rate produced by #Bitcoin miners at #BlockstreamMining colocation facilities around the globe. As a security token, $BMN is subject to certain regulatory requirements and provides investors with legal recourse and high-level transparency." ⛏️ https://t.co/n9HyuWFTpF
— Blockstream (@Blockstream) March 30, 2021

In the announcement published on Blockstream’s website, CEO Adam Back and CIO Chris Cook emphasized the benefits of gaining exposure to the security token in comparison to investing in mining infrastructure:

“By packaging mining in a tradable token, the BMN allows investors more flexibility than a traditional investment in physical mining infrastructure—investors can more easily adjust their exposure to Bitcoin mining by trading the BMN on secondary markets.”

“By expanding investor participation in Bitcoin’s proof-of-work, the BMN also strengthens Bitcoin’s security and censorship resistance. It’s a win-win for investors and the broader network,” the post said.

Exposure to Bitcoin mining has been a lucrative option for many investors. Cointelegraph reported on March 22, that shares in the top four publicly traded mining firms were up 5000% in the last 12 months, compared to the 900% growth of Bitcoin in that same period.

security token