Société Générale’s SG-FORGE Issues First Tokenized Bond in U.S.

Société Générale's SG-FORGE has successfully completed its first digital bond issuance in the United States utilizing blockchain technology. This short-term bond is linked to the secured overnight financing rate (SOFR) and was acquired by trading firm DRW. The issuance marks a significant expansion of SG-FORGE's presence in on-chain capital markets, operating on the Canton Network, a privacy-enabled blockchain infrastructure. This network facilitates immediate settlements while maintaining the legal frameworks typical in conventional finance. Broadridge Financial Solutions provided the necessary tokenization technology for this transaction, which represents a pioneering application of their platform for issuing live securities. Industry experts view this issuance as an essential step towards enhancing efficiency, transparency, and access in financial markets, hinting at potential future complexities in product offerings, such as structured notes. Legal support was provided by Mayer Brown, and BNY Mellon will act as the paying agent. This transaction is expected to pave the way for more sophisticated financial products using blockchain technology.

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