SocGen Introduces Digital Asset Service for Firms to Develop Crypto Funds

Societe Generale Securities Services (SGSS), the third-largest French bank by market cap, announced on Wednesday a new digital asset service designed for asset management firms wishing to develop innovative professional funds based on cryptocurrencies.

The French investment bank has continued expanding its clients' crypto custody services. This new service will enable the asset managers to offer crypto funds in a "simple and adapted" manner within a framework that is compliant with European regulations, Societe Generale said.

Many investors want to integrate cryptocurrencies into their portfolios. An increasing number of asset management firms are therefore looking to create new ranges of solutions invested mainly in digital assets.

Societe Generale has introduced a new crypto service that enables asset management companies to act as crypto fund custodians, valuators, and liability managers.

The new service has been adopted by French asset management company Arquant Capital SAS, which is launching a range of funds investing in cryptocurrency, beginning with two products based on Bitcoin (BTC), Ether (ETH), and derivatives.

David Abitbol, Head of Societe Generale Securities Services, talked about the development: “This solution provides Arquant Capital with an innovative structuring that allows us to scale our offering and focus on creating value for our clients.”

Societe Generale Group is already recognized as an expert in crypto assets with its subsidiary Societe Generale FORGE. The investment bank, therefore, continues developing its services related to digital assets to meet the needs of its customers.

Since 2019, FORGE, an integrated subsidiary of Societe Generale, has been offering several native security token issuances deployed on blockchain for several institutions, including the European Investment Bank’s (EIB) €100 million digital bond issued in 2021.

Through FORGE, the investment bank offers a range of capital market products to institutional clients under a native security token format on Tezos and Ethereum.

New Opportunities in The Digital Assets Space

In recent months, there has been a prevalent trend among French banking heavyweights moving to offer crypto-related services to their clients as demand increases.

In July, BNP Paribas (BNP), France's largest bank, entered the crypto custody space via a partnership with Swiss digital asset safekeeping firm Metaco.

In April, French bank Delubac & Cie obtained a registration license to offer digital assets services (the purchase, sale and custody of crypto-assets) to institutions, companies, and individuals. The license enabled the bank to offer three crypto-assets which include Tezos, Bitcoin, and Ethereum, as well as plans to include access to staking and tokenized assets such as NFTs in the service offerings.

Many banks are edging towards crypto custody to respond to the increased demand from investors for cryptocurrencies.