Société Générale join hands with Arquant Capital to offer custodial services

By Shashank Bhardwaj| Sep 23, 2022

The new initiative will allow crypto fund managers to offer crypto assets within the European regulatory framework

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Société Générale announced on Wednesday that it would be expanding its cryptocurrency asset management services through its Security Services subsidiary. By capitalisation, Société Générale is the fourth largest banking group in the Eurozone. The announcement was accompanied by the news that Arquant Capital SAS has already adopted the new product. It is the most recent client of the firm. Arquant Capital is a French Financial Markets Authority (AMF, 'Autorité des marchés financiers')-licensed asset management firm. It provides two digital asset products denominated in euros, including Bitcoin (BTC), Ether (ETH), and other derivatives.

The new services are specifically designed for asset manager clients looking to respond to increased investor demand for cryptocurrencies. In simpler terms, clients who manage digital asset funds can now choose Société Générale as their fund custodian, valuator, and liability manager. The tools are intended to make it easier for institutional investors to incorporate cryptocurrencies into their portfolios. The services will enable asset managers to offer crypto funds in a simple and adapted manner within a framework that complies with European regulations.

David Abitbol, director of Société Générale Securities Services, said in a public statement, "By combining Société Générale's innovation expertise with Arquant Capital's technical skills, we are expanding SGSS' ability to meet the diversification needs of asset managers."

The move by Société Générale demonstrates mainstream financial institutions' eagerness to provide crypto-related services to their clients as demand grows. This has been especially prevalent among French banking titans in recent months. BNP Paribas, France's largest bank, announced in July that it would enter into crypto custody in collaboration with Swiss digital asset safekeeping firm Metaco.

With its subsidiary, Société Générale - FORGE, the Société Générale Group is already a recognised expert in crypto assets. Société Générale has previously issued eurobonds on the Ethereum blockchain and proposed DAI stablecoin loans in exchange for bond tokens. On the Tezos blockchain, the company also has a security token. It is currently collaborating with the European Central Bank on the development of a digital euro.

Talking about the recent initiative, Eron Angjele, CEO of Arquant Capital, commented, "This solution provides Arquant Capital with an innovative structuring that allows us to scale our offering and focus on creating value for our clients.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash