Etienne Deniau, Head of Business Strategy, Société Générale Securities Services

The token market will be larger than the securities market, because in some way it will absorb the securities market. All the securities can be tokenised today. The beauty of the token is that you can represent anything, and not only securities, and that is what will drive at first the growth of the token.

2023

According to Etienne, just like Artificial Intelligence, Distributed Ledger Technology is already having an impact on the Financial industry.

The current EU infrastructures with RM, MTF, OTF, CCP, T2S, CSD and Target2 have a proven reliability record for issuing and exchanging safely securities leveraging regulated intermediaries. They may be capable to reduce their turn around time and list more assets than just securities.

On the token side, providing that law, regulation and tax requirements are met, granting direct access to retail that are holding 30% of securities will first be an education issue but it might bring an incredible efficiency for other types of assets like non-listed securities or real estate.

Latest news about Etienne Deniau

• Hong Kong’s Financial Services and Treasury Secretary, Christopher Hui, announced forthcoming regulatory measures for tokenization, emphasizing customer protection. The Securities and Futures Commission will target intermediaries involved in tokenized securities and authorized investment products. The government is also discussing expanding regulatory purview to include broader virtual asset transactions.
• J.P. Morgan’s Onyx Digital Assets division is partnering with Apollo to develop a proof-of-concept for interoperable blockchain finance, enabling fund managers to tokenize funds and purchase and rebalance positions in tokenized assets across multiple blockchains. This collaboration demonstrates the potential of blockchain technology in managing large-scale client portfolios.