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

Core Viewpoint - 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 onchain capital markets [1][3]. Group 1: Digital Bond Issuance - The short-term bond is linked to the secured overnight financing rate (SOFR) and was purchased by trading firm DRW [1]. - The bond operates on the Canton Network, a privacy-enabled blockchain developed by Digital Asset, allowing for instant settlement while maintaining the legal structure of traditional finance [2]. - This transaction signifies Société Générale's entry into the U.S. market for digital bonds, which could pave the way for more complex onchain products in the future [3]. Group 2: Technological and Legal Support - Broadridge Financial Solutions provided the tokenization technology for this issuance, marking the first live securities issuance using its new platform [2]. - BNY will act as the paying agent, while IntellectEU's Catalyst Blockchain Manager facilitated the blockchain infrastructure [5]. - Legal matters were advised by Mayer Brown, ensuring compliance and regulatory adherence [5]. Group 3: Broader Strategic Moves - SG-FORGE has been active in the digital bond space in Europe since 2019, and this recent issuance indicates a strategic move to integrate its euro and dollar-backed stablecoins into Deutsche Börse's core market infrastructure [3][5]. - The firm is also expanding into decentralized finance by listing its regulated stablecoins on Ethereum-based protocols like Morpho and Uniswap, enabling their use as collateral by institutional investors [6]. Group 4: Industry Perspective - Chris Zuehlke, global head of DRW's crypto arm, emphasized that the issuance of digital bonds is a crucial step towards the future of finance, highlighting the potential of tokenization to enhance efficiency, transparency, and accessibility in financial markets [4].