Societe Generale, one of Europe’s largest financial institutions employing over 117,000 people worldwide and one of France’s oldest banks, is taking clear steps towards cryptocurrencies, signaling the future.
The French banking giant Societe Generale has issued its first tokenized bond on Ethereum in response to the increasing demand for the tokenization of real-world assets among traditional financial institutions.
Societe Generale’s digital asset-focused unit, SG-FORGE, recorded a token issuance worth 10 million euros, with participation from buyers including AXA Investment Managers (AXA IM) and Generali Investments. Last month, JPMorgan and Apollo were also in the spotlight with their crypto-backed bond issuances.
The value of the global tokenized asset market is expected to exceed 10 trillion dollars. We have discussed in detail why blockchain is attractive for asset issuances, covering transparency, cost-effectiveness, and security among many reasons. However, ultimately, what remains to be seen is how this trend will impact cryptocurrencies like Ethereum and Chainlink, which are prominent in this field.
If we are talking about a future worth trillions of dollars, we should also consider how much of it will be on blockchains with a crypto orientation like Ethereum or Chainlink. When the Total Value Locked (TVL) on Ethereum reaches 1 trillion dollars, it may not be logical for the price of Ethereum to remain at a few thousand dollars.