LuXSE and Société Générale inaugurate the first admission of financial securities issued on blockchain on the Luxembourg Stock Exchange
The three series of native digital debt securities (or “security tokens”) admitted to LuxSE SOL are “covered bonds” (OFH Tokens) and structured products, which were issued and deployed by the Société Générale subsidiary specializing in crypto assets, Societe Generale – FORGE (SG – FORGE), on the public Ethereum and Tezos blockchains respectively. These products are considered financial instruments and debt securities under French law and are compatible with the CAST open source interoperability and securitization framework. [1]
This admission is part of a broader context, marked by the acceleration of the digitization of the market using blockchain technology, and in particular by the imminent establishment of the European pilot regime, which should come into force in 2022. , and which will allow the processing of “security tokens” through market infrastructures in line with the applicable European regulations during a transitional period.
Native security tokens issued on DLT enable a fully digital issuance process and lifecycle. Due to their innovative features, native security tokens have the potential to significantly improve the efficiency and transparency of financial markets and make transactions safer and more resilient, while offering the same benefits as financial instruments. conventionally issued.
BLOCKCHAIN TECHNOLOGY GOES WIDESPREAD IN THE FINANCIAL INDUSTRY
This new breakthrough by LuxSE in the area of DLT is a natural next step in LuxSE’s ambitious digital agenda, driving the Exchange’s commitment to digitizing and modernizing capital markets.
“The admission of security tokens to the official list of securities of the Luxembourg Stock Exchange represents a real milestone for EU financial markets, as it provides a unique, innovative, robust and publicly accessible solution for issuers and investors of these instruments. This is another important step towards the digital transformation of the Luxembourg Stock Exchange and a first step in our contribution to the dissemination of prices and the transparency of financial instruments issued in DLT”, said Julie Becker, CEO of LuxSE. “We are delighted to welcome Société Générale, a leading institution in the field of DLT, as the first issuer of security tokens on our exchange and are confident that other issuers will follow as more and more d Market players are interested in this disruptive technology. »
In order to clarify the eligibility criteria and guide security token issuers through the admission process, LuxSE today published Guidelines for the registration of DLT financial instruments on SOL Guidelines for the registration DLT financial instruments on SOL. To be considered for admission to LuxSE SOL, security tokens must comply with these guidelines as well as the LuxSE SOL rulebook.
A PIONEER IN THE FIELD
Societe Generale is a pioneer in the field of blockchain, innovation being at the heart of the Group’s strategic priorities. April 2019, Societe Generale From its subsidiary Societe Generale – FORGE, dedicated to digital assets, structured several native issues of “security tokens” deployed on DLT for their clients. The latest €100 million digital bond issue from the European Investment Bank (EIB) issued in 2021.
Arnaud Jacquemin, Chief Executive Officer of Societe Generale Luxembourg and member of the Societe Generale Group Management Committee, said: “Based on the differentiating expertise of the SG – FORGE teams, our intimate knowledge of the Luxembourg capital market environment and our close relationship with LuxSE, this very first listing shows the capacity of our institutions to gradually implement a innovative technology, thus contributing to building the global capital markets of tomorrow and their infrastructures”.
FACILITATING THE INDICATIVE DISSEMINATION OF PRICES AND DATA
Given the complex nature of security tokens in the initial phase, the new LuxSE service will only be available to experienced and qualified issuers and applicants for financial market transactions. In addition, only financial instruments, and more specifically debt securities, can be admitted to LuxSE SOL at this stage.
As is the case with other securities registered on LuxSE SOL, the “security tokens” will not be admitted to trading on the LuxSE markets. However, the registration of DLT securities on LuxSE SOL will provide increased visibility for security tokens and their issuers, and will further facilitate the dissemination of indicative prices and securities data in this new form of financial instruments.