Société Générale in turn offers a crypto custody service

Société Générale in turn offers a crypto custody service

Société Générale, the third largest French bank, is launching a cryptocurrency custody service for its institutional clients, via its subsidiary SGSS.

Société Générale launches into the institutional storage of cryptos

The French bank, which is not new to the world of digital assets and blockchain with its SG Forge division, has just announced the launch of a cryptocurrency custody service. Aimed at asset managers trying to meet a growing demand for cryptocurrency exposure among investors, Societe Generale promises a “simple and tailored” experience that will facilitate the creation of dedicated funds “within the European regulatory framework”.

More and more investors want to integrate cryptocurrencies into their portfolios. Management companies are therefore seeking to develop new ranges of solutions invested mainly in digital assets.

Press release from SGSS

Fact, SGSS, its subsidiary dedicated to fund management, will have both the role of fund custodian, valuator and liability manager.

A first French management company has already used this service. This is’Arquant Capitalregistered with the Autorité des Marchés Financiers (AMF) and which has just launched two trusts, Bitcoin and Ethereum.

This solution provides Arquant Capital with an innovative structure that allows us to develop our offer and focus on creating value for our clients.

Eron Angjele, CEO of Arquant Capital, in Press Release

A collaboration welcomed by David Abitbol, ​​director of Societe Generale Securities Services.

By combining Societe Generale’s innovation expertise with the technical skills of Arquant Capital, we are strengthening SGSS’ ability to meet the diversification needs of management companies.

Banks on the offensive in the crypto custody niche

The Société Générale initiative had been in the cards for at least a year.

And it is not the only French bank to take a close interest in setting up a crypto custody service. In effect, BNP Paribas, through its asset custody subsidiary BNP Paribas Securities Services, would also be in the running to become a provider of this type of service via a partnership with the specialized Swiss company Metaco..

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Other banks in Europe have also made a commitment, such as the Spanish BBVA. Elsewhere, banking institutions are not left out, led by the big Americans like BNY Mellon, State Street or US Bank, which have benefited so far from tolerant legislation since Brian Brooks, interim comptroller of the currency under the mandate of Trump, had authorized national banks to hold cryptocurrencies on behalf of their customers. A trend that is not necessarily viewed favorably by the Basel Committee for Banking Supervision, an offshoot of the Bank for International Settlements. Its overly drastic recommendations in this area have raised an outcry among major banking players.

Either way, institutional-grade crypto custodial service is a very buoyant niche today. Recently, the American stock market giant Nasdaq positioned itself in this segment. The offer, already plethoric, is only expanding.

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There is still time to react so as not to leave Bitcoin and co in the hands of institutions, register without delay on the FTX platform and benefit from a lifetime reduction on trading fees (commercial link).

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