Société Générale Announces The Successful Settlement Of Structured Product On Tezos Through Parel S.A

by | Apr 23, 2021 | Adoption, Digital Securities, Latest

The 5th biggest bank in Europe by assets, Société Générale has announced the successful settlement of Tezos structured product through their clearing and settlement subsidiary Parel S.A. 

Société Générale joins the ‘Net-Zero’ banking alliance alongside 43 banks from 23 countries totalling $28.5 trillion in assets committing to align their lending and investment portfolios with net-zero emissions by 2050.

Société Générale And Tezos

 On the 15th of April it was announced that  Société Générale had issued the first structured product on the Tezos blockchain. According to Investopedia ‘structured products’ are: 

Structured products are pre-packaged investments that normally include assets linked to interest plus one or more derivatives. They are generally tied to an index or basket of securities, and are designed to facilitate highly customized risk-return objectives.

The structured product in this instance amounted to €5 million.

Paral S.A

Paral S.A is a clearing and settlement subsidiary of Société Générale. According to Société Générale PAREL provides clearing and settlement for its broker clients. The types of products covered include :

  • all securities cleared by the Central Counter Party clearing house of which Parel is either a direct or indirect member
  • all securities listed by central securities depositories for which Parel is either a direct or indirect member
  • specifically equities, bonds, warrants, ETFs…

It has since been announced that the structured product on the Tezos blockchain has now been successfully settled through Parel S.A. 

The success of this effort has proven the abilities of the Tezos blockchain and it also bodes well for future collaboration between all parties involved.

Société Générale And The ‘Net-Zero’ Banking Alliance

Société Générale just recently joined the ‘Net-Zero’ banking alliance, as a founding member of the UN initiative. This alliance is a new initiative, which includes 43 banks from 23 countries and totalling $28.5 trillion in assets, who are committing to align their lending and investment portfolios with net-zero emissions by 2050.

With banks experimenting with blockchain technology at faster rates, the development of the ‘Net-Zero’ banking alliance looks promising for Tezos.

Tezos has been proven to be one of the greenest blockchains in relation to emissions coming from transactions, thanks to its robust and well-developed proof of stake technology. 

It was stated

Combining near-term action with accountability, this ambitious commitment sees banks setting an intermediate target for 2030 or sooner, using robust, science-based guidelines.

Société Générale stated:

The Group is committed to reducing the carbon intensity of its financing activities linked to electricity production by 18% by 2025. 

It is anticipated that with these close timeframes banks would be reluctant to use proof of work blockchain technology in a large scale, as it could impact the chances of success in hitting these ambitious targets.

Experimenting with robust proof of stake technology blockchains such as Tezos would hardly impact the targets and could also drive many efficiencies to accelerate the progress to hitting these goals.

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