Securities Finance Industry News | LuxSE admits digital securities tokens to the official list

The Luxembourg Stock Exchange and Société Générale have announced the admission of the first digital financial instruments registered on distributed public ledger technology to the official list of securities of the stock exchange (LuxSE SOL).

The three series of tokens admitted on LuxSE SOL are digital covered bonds (OFH tokens) and structured products issued and deployed by Société Générale – FORGE, the digital division of the French financial services group.

Launched natively on the Ethereum and Tezos public blockchains, these tokens qualify as debt securities and financial instruments under French law and comply with the CAST open source framework for interoperability and security.

Native securities tokens issued on DLT enable a fully digital issuance process and securities lifecycle, LuxSE and Société Générale said in a joint statement.

The EU pilot scheme, which is expected to come into effect in 2022, will push the digitization of financial markets using blockchain technology, allowing security tokens to be transacted through market infrastructures in accordance with applicable EU regulations during a transitional period.

Societe Generale reports that, since 2019, its subsidiary SG – FORGE has structured a number of digital token issuances on DLT on behalf of clients. The most recent case was the release of a €100 million digital bond by the European Investment Bank in 2021.

Arnaud Jacquemin, CEO of Societe Generale Luxembourg and member of the Societe Generale group management committee, declares: “Taking advantage of the differentiating expertise of the SG – FORGE teams, of our intimate knowledge of the Luxembourg capital market environment and of our close relationship with LuxSE, this first-ever listing demonstrates our institution’s ability to implement truly innovative technology step by step, helping to build the global capital market approach and distribution infrastructure of tomorrow.

LuxSE describes this development in the DLT arena as a natural next step for its digital agenda which underscores the exchange’s commitment to digitizing and modernizing capital markets.

Julie Becker, CEO of LuxSE, said: “The admission of security tokens to the official securities list of the Luxembourg Stock Exchange represents a real milestone for EU financial markets as it offers a unique, innovative , robust and publicly available for issuers and investors thereof. implements.

“This is another important step towards the digital transformation of the Luxembourg Stock Exchange and a first cornerstone of our contribution to price discovery and transparency of financial instruments issued via DLT.”

Comments are closed.