The Luxembourg Stock Exchange has listed its first security tokens registered on a public blockchain.
The three series of security tokens admitted on LuxSE SOL are digital covered bonds and structured products that have been issued and deployed by Societe Generale’s digital assets arm, Societe Generale - Forge, natively on the Ethereum and Tezos public blockchains respectively.
They are characterised as financial instruments and debt securities under French law and are compliant with the Cast open-source interoperability and securitization framework.
For SocGen, the latest development follows a covered bond security token issuance on Ethereum, settled in euros, in 2019, and a second such issuance settled in CBDC issued by Banque de France last year
As is the case for other securities registered on LuxSE SOL, the tokens will not be admitted to trading on LuxSE’s markets.
Julie Becker, CEO of LuxSE, says the listing will provide enhanced visibility to security tokens and their issuers and the dissemination of indicative prices and securities data.
“ 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," she says. “We are confident that other issuers will follow suit as more and more market participants capitalize on this disruptive technology.”