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

Société Générale's crypto arm, SG-FORGE, has successfully completed its first blockchain-based digital bond issuance in the U.S., marking a significant expansion into on-chain capital markets. The short-term bond, linked to the secured overnight financing rate (SOFR), was bought by trading firm DRW. It utilizes Broadridge Financial Solutions' tokenization technology and operates on the Canton Network, which is designed for privacy and allows instantaneous settlement while conforming to traditional financial structures. This groundbreaking issuance opens the door to U.S. markets for SG-FORGE and could pave the way for more sophisticated product offerings, such as structured notes. Chris Zuehlke, head of DRW's crypto division, emphasized the importance of this milestone for the future of finance, highlighting tokenization's potential to enhance efficiency and accessibility in financial markets. BNY Mellon is set to act as the paying agent, with legal advice from Mayer Brown during the process.

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