Metaco Signs SocGen Deal for Crypto Custody
Posted by Colin Lambert. Last updated: July 1, 2022
Shortly after signing a deal with Citi, Swiss digital assets custody technology provider Metaco has inked a deal with Société Générale’s SG-Forge subsidiary, which provides issuers and investors with end-to-end services to issue, invest and manage digital-native security tokens registered on public blockchains.
The bank says since launching SG-Forge in 2019 it has structured several native security tokens issuances deployed on blockchain for their clients such as the European Investment Bank’s €100 million digital bond issued in 2021. It is now offering a range of capital market products to institutional clients under a native security token format on Ethereum and Tezos with full banking level safety and regulatory compliance.
The firms observe that the agreement takes place within a larger context marked by the acceleration of market digitalisation using blockchain technology, notably through the forthcoming implementation of the EU Pilot Regime, which will permit the processing of security tokens through market infrastructures in compatibility with applicable EU regulations.
Security tokens allow for a fully digital issuance process and lifecycle. Due to their innovative characteristics, the firms say they have the potential to significantly improve efficiency, speed 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.
“Bridging the digital asset industry and traditional finance requires a multifaceted approach incorporating institutional-grade technology, regulation, as well as industrial capacities,” says Jean-Marc Stenger, CEO of SG-Forge. “By partnering with Metaco, SG–Forge will be able to leverage their secure infrastructure to ensure that we have a solid foundation to grow our digital asset market activities.”
Alexandre Fleury, co-head of global market activities at SocGen, adds, “Leveraging on the differentiating expertise of SG-Forge and our intimate knowledge of markets activities, this partnership shows Société Générale’s capacity to step-by-step implement a truly innovative technology, thus helping build tomorrow’s global capital market distribution approach and infrastructure.”