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31/01/2022

LuxSE admits security tokens issued by SocGen

LUXSE ADMITS SECURITY TOKENS ISSUED BY SOCIETE GENERALE

Luxembourg 31 January 2022: The Luxembourg Stock Exchange (LuxSE) and Societe Generale today marked the admission of the very first financial instruments registered on a public Distributed Ledger Technology (DLT) on LuxSE’s Securities Official List (LuxSE SOL).

The three series of security tokens admitted on LuxSE SOL are digital covered bonds (OFH Tokens) and structured products that have been issued and deployed by Societe Generale’s digital assets arm, Societe Generale - FORGE (SG - FORGE), natively on the Ethereum and Tezos public blockchains respectively. They are characterized as financial instruments and debt securities under French law and are compliant with the CAST[i] open-source interoperability and securitization framework.

This admission takes place within a larger context marked by the acceleration of market digitalization using blockchain technology, notably through the imminent adoption of the EU Pilot Regime, which is expected to enter into force in 2022, and which will permit the processing of security tokens through market infrastructures in compatibility with applicable EU regulations within a transitional period.

Native security tokens issued on DLT allow for a fully digital issuance process and lifecycle. Due to their innovative characteristics, native security tokens have the potential to significantly improve efficiency and transparency in financial markets and make transactions safer and more resilient – all while offering benefits similar to those of financial instruments issued in a conventional way.

DLT GOING MAINSTREAM IN FINANCIAL INDUSTRY

This new development by LuxSE into the DLT sphere, is a natural next step in LuxSE’s ambitious digital agenda, underlining the exchange’s commitment to digitizing and modernizing capital markets.

“The admission of security tokens on the Luxembourg Stock Exchange Securities Official List represents a true milestone for EU financial markets as it provides for a unique, innovative, robust, and publicly accessible solution for issuers and investors of these instruments. This constitutes yet another significant step towards the digital transformation of the Luxembourg Stock Exchange, and a very first building block in our contribution towards price discovery and transparency of financial instruments issued using DLT," said Julie Becker, CEO of LuxSE. “We are delighted to welcome Societe Generale, a leading institution in the DLT space, as the first issuer of security tokens at our exchange and are confident that other issuers will follow suit as more and more market participants capitalize on this disruptive technology.”

To clarify the eligibility criteria and guide issuers of security tokens through the admission process, LuxSE today published Guidelines for the registration of DLT financial instruments onto SOL. To be considered for admission on LuxSE SOL, security tokens will need to respect these guidelines as well as the LuxSE SOL Rulebook.

For more information about the admission of security tokens on LuxSE SOL, please visit https://www.bourse.lu/admitting-security-tokens-on-sol

 


[i] Compliant Architecture for Security Tokens - www.cast-framework.com

 

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