The cryptocurrency markets are not just about token prices, and financial institutions are well aware of this. Their recent actions confirm it. Following the choice of Ethereum by one of China’s largest banks for the issuance of tokenized assets, the European giant Societe Generale has also opted for the altcoin king. All these are factors that feed optimism for long-term growth.
Societe Generale and Ethereum
Societe Generale, one of Europe’s largest financial companies, employs over 117,000 people worldwide. It is one of the oldest banks in France. The nature of the steps taken by such institutions towards cryptocurrency should be well understood because they give very clear signals about the future.
The French banking giant Societe Generale has conducted its first tokenized bond issue on the Ethereum network following the increasing demand for tokenization of real-world assets (RWA) among traditional financial institutions.
SocGen’s digital asset-focused arm, SG-FORGE, registered the issuance of €10 million worth of tokens, with AXA Investment Managers (AXA IM) and Generali Investments being the buyers. Last month, JPMorgan and Apollo were in the headlines again for bond issuance on crypto networks.
The Future of Ethereum
The global market value of tokenized assets is expected to exceed $10 trillion. We have extensively discussed why blockchain is attractive for assets when issuing bonds. Reasons such as transparency, costs, security, and many more can be listed. However, at the end of the day, what we see is how this trend will affect networks like Ethereum and Chainlink that are prominent in this field.
If we are talking about a future with $10 trillion in assets, we should also consider how much of it will be on blockchains with a crypto aspect like Ethereum or Chainlink. In a world where the Total Value Locked (TVL) on the Ethereum network reaches $1 trillion, Ethereum’s price remaining at a few thousand dollars may not make sense.
Perhaps in the future, we will see such bond issuances through Bitcoin sidechains as well (Stacks (STX) could play a role here?). All these give us an idea of how the future of cryptocurrencies will be shaped beyond speculative price movements, with the power of the new era, even the new internet era.