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

Société Générale's crypto arm SG-FORGE has issued its first blockchain-based digital bond in the U.S., expanding its presence in on-chain capital markets. The short-term bond, linked to the secured overnight financing rate (SOFR), was purchased by trading firm DRW. This bond utilizes Broadridge Financial Solutions' tokenization technology and operates on the Canton Network, a privacy-enabled blockchain infrastructure that allows for instant settlement while preserving the legal structure of traditional finance. This issuance marks a significant step toward the integration of digital assets into the U.S. market, with potential future applications for more complex financial products, such as structured notes. Chris Zuehlke from DRW emphasized that tokenization can enhance efficiency and transparency in the financial ecosystem. BNY Mellon will be acting as the paying agent for the bond, with IntellectEU providing blockchain infrastructure support and Mayer Brown advising on legal matters. Additionally, SG-FORGE is also exploring deeper engagement in decentralized finance (DeFi) protocols.

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