Société Générale: 100-million-Euro transaction is fuelling discussion about tokenization

the The French Bank Société Générale is managed in the last month, a milestone. By using tokens of isolated, immobile Bonds, the financial giant paid less than 100 million euros. This led to discussions about the impact of Tokenization on the financial markets. Observers are currently debating whether the issuing of a similar Security Token could be the engine of new growth.

By David Barkhausen
13. May 2019 BTC$7.746,00 11.20% part Facebook Twitter LinkedIn xing mail

Bitcoin Futures, Central Bank-Kryptos, Blockchain currency trading crypto – currencies and Distributed Ledger technologies have gained in recent years an increasing impact on the traditional financial sector. You believe some observers, could now also be a further component of old-age financial markets before ground-breaking changes: the trading in bonds and interest-bearing securities. The so-called Tokenization – the digital securitization of traditional asset classes – is here to usher in a new Chapter, and as the engine of future growth prove.

supporters of this Vision will feel with the recent news from France confirmed: How the Société Générale (Absorbed) in the last month, in a press release, announced, managed by the Paris Bank, a previous milestone. In a test trial, the financial giant has transferred a sum of EUR 100 million in real estate-bonds – all packaged in a crypto-Token on Ethereum-based.

AAA Rating from Moody's, and Fitch

the Bank writes, should the pilot project "more efficient ways of to release of bonds" and so consider how Blockchain technologies will make securities trading more efficient. Here a transaction takes days usually to several. Blockchain solutions are considered to be more efficient answer: you can transfer funds in near real-time.

Whether these hopes when trying the French now have come to pass, makes the big Bank, sometimes without comment. Attention should, however, make the Top Ratings. So the crypto will have to obtain bonds of the heavyweights Moody's and Fitch highest AAA Scores.

Whether, and to what effect will unfold the Tokenization on the financial market in the future, experts and observers argue now. As the US economic news, Bloomberg reports, has triggered the test run of the Société Générale in the past days, discussions on the latest Trend in the Blockchain-the universe.

Absorbed and initiates discussion – Are the markets ready for Tokenization?

For skeptics on the one hand, the issuance of a Security Token represents merely the attempt to make the last year of suspected ruptured crypto bubble a little air. Real market potential, however, to search for the encrypted bonds in vain.

The youngest Pilot in the Société Générale would disclose little more than the already limited Use of the Token, e.g., Richard Kemmish, the former value of paper-the chief of Credit Suisse sure. Although the Bank has had with your test run in the administration of the bonds identified a suitable use case for Tokenization. How high are the savings to be made through the Blockchain-use were, however, in fact, is, however, unclear. Currently, one must ask, rather, whether the financial system is for a broad application of the new technologies.

The Almazo from the FinTech consultants Capco agrees with Romal:

It will take years for the market [Security-Token] Mature and developed.

The optimists: the Security Token can be an engine for growth

For optimists like Graham Rodford, managing Director of the Trading company Archax, tokenization, however, the Fundraising method of the future.

In the future everything will be tokenized to [...]. It's not about to act in a formerly illiquid asset classes. The Tokenization is also instilling traditional markets, efficiency,

the Trader pointed to the wide application potential of the securitised assets.

Security Token will allow for the financing and the participation of a broad range of investment objects – real estate stock funds and works of art. In particular, small and medium-sized companies, where the IPO has not remained, make the digital securities is also a way to collect capital.

This would develop according to observers in the coming years, a heavyweight market.

projections by the Berlin-based FinTech Finoa about the future trading volume of the Security Token to quantify currently the proud 24 Trillion US dollars [21,3 billion Euro].

Although skeptics reject such ideas as utopian. Parts of the traditional financial world, as with the Société Générale, seem to take the Trend of the tokenization, but seriously. That in the future more financial giants to grasp the opportunities of the digital securitisation to the visor, will remain only a matter of time.

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