The third-largest bank in France by market capitalization, Société Générale, has received regulatory approval to offer digital asset services in the country. The bank received a regulatory greenlight to offer these services in September 2022.
Third-largest bank in France to offer digital asset services
Société Générale is a banking institution that was founded in 1864. The bank has total assets of over €1.4 billion by 2020. Société Générale is the third-largest bank in France and the sixth-largest one in Europe. Société Générale will offer its services through Societe Generale Forge, a fully integrated blockchain subsidiary. The recently received regulatory approval will allow the bank to sell, trade, and custody digital assets.
Société Générale obtained the approval from Autorité des Marchés Financiers (AMF). The AMF is the financial market regulator in France. The banking giant is now a digital asset service provider (DASP) as of last month.
With Société Générale serving as a DASP, it will be easier for venture capital firms to locate regulated custodial solutions for digital asset services. Crypto funds in France, like the €100 million Ledger Cathay Capital fund, were launched as special purpose vehicles.
The recent greenlight given by the AMF will allow venture capital firms in France looking for custody for their token investments to use the services of one of the most renowned players in the banking sector. Therefore, this move could trigger notable adoption of cryptocurrency assets by large institutional players.
It is not the first time that Société Générale is making its foray into the digital asset sector. In September, the bank announced that it would provide new custodial services targeting asset management companies that wanted to create funds based on cryptocurrencies.
In June this year, Metaco, a cryptocurrency custody platform, announced a possible partnership with Société Générale Forge. The partnership’s goal is to expand the digital asset capabilities of the banking giant.
Friendly crypto regulations in France
France is positioning itself as the main hub for cryptocurrency companies. Crypto firms have been eyeing the country as a strategic market for blockchain technologies in Europe.
One of the leading exchanges that have moved to France is Crypto.com. The exchange announced making a $145 million investment in the country to support its operations. The exchange is also planning to set up its regional headquarters in Europe in the country.
Besides Crypto.com, the other crypto firms that have shown interest in setting up their regional headquarters in France are Binance and Luno. The firms have already obtained licenses in the country as it seeks to set itself apart as a hub for blockchain technology. In April, Binance, the world’s largest exchange, announced a $97 million investment in France.
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