The Third Largest Bank In France Licensed To Operate Digital Asset Services
Last month, Société Générale, France’s third-largest bank by market capitalization, discreetly acquired a regulatory license to operate as a digital asset service provider in the nation.
Société Générale, founded in 1864, is France’s third-largest bank and the sixth-largest participant in Europe in terms of balance sheets, with assets reaching more than €1.4 billion as of 2020.
The banking behemoth can now hold, sell, and trade digital assets through its fully integrated blockchain-focused subsidiary, Societe Generale Forge, as of last month. This is due to a decision by the French financial market regulator, the Autorité des Marchés Financiers (AMF), on digital asset service providers (DASP).
Many venture investors in France are now struggling to find regulated custodial solutions for digital assets. As a result, French crypto funds, like the €100 million Ledger Cathay Capital fund, were established as unregulated special purpose entities.
With the AMF’s newest decision, French venture capital companies wanting to custody their token investments may be able to employ the services of one of the country’s most well-known banking players.
This follows the bank’s past forays into the digital asset area. Last month, the bank stated that its securities services would provide additional custodial services for asset management firms looking to build cryptocurrency-based funds.
Metaco, a cryptocurrency custody provider, said in June that it would collaborate with Société Générale’s Forge to extend its services.
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