Arquant Capital is the first management company in France to offer professional investors actively managed funds in Bitcoin and Ethereum. A subsidiary of Société Générale is the custodian of these funds, a first for the bank.
A service authorized by the AMF
We already knew the interest of the French bank for innovative themes, in particular through its subsidiary SG Forge, but we knew very little about the niche market for investing in cryptocurrencies.
Societe Generale, through its subsidiary Societe Generale Securities Services (SGSS), has extended its securities services offer to funds investing in crypto-currencies, including bitcoin and ether. Its offer is aimed solely at management companies initially (or “asset managers”).
Cryptos are making their debut with professional investors in the Parisian marketplace. Arquant Capital, a management company for professional investors (institutionals, private banks, family offices and companies), announced on Wednesday the launch of the first actively managed funds under French law and investing directly in cryptocurrencies.
The first two funds are based on Bitcoin and Ethereum, the two main cryptocurrencies by value. The management company created in 2019 was approved by the Autorité des marchés financiers (AMF) last May to become a portfolio manager of alternative investment funds (AIFM). This is the only visa of this type issued by the AMF to a management company specializing in digital assets.
“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”, underlines the bank’s press release.
The latter thus intends to entrust managers with “the roles of fund custodian, valuer and liability manager. The services provided by SGSS allow asset managers to enrich their offers within the European regulatory framework in a simple and appropriate way”, underlined the media.
“The purpose of these two funds is to offer professional investors the possibility of diversifying their asset allocation by directly exposing themselves to Bitcoin and Ethereum through investment vehicles adapted to their requirements in terms of compliance and whose taxation is identical to that of FCPs (Fonds Commun de Placement)”, specifies the press release.
Société Générale is very involved in the development of blockchain solutions
The French bank Société Générale has been interested in blockchain applications in decentralized finance for several years, although it initially preferred to distance itself from Bitcoin.
In 2017, Séverin Cabannes, Deputy CEO of Societe Generale, noted that his company was very inclined to “invest in blockchain technology” rather than bitcoin.
In 2019, Societe Generale SFH issued a housing finance bond (OFH) on Ethereum in the form of security tokens. In 2021, Societe Generale Forge chose the Tezos (XTZ) blockchain to launch its first tokenized structured product.
Last year, SG Forge co-founder Sylvain Prigent also posted a proposal on MakerDAO’s governance module on behalf of his company to add a new type of collateral that can be used to take out DAI loans.
“By combining Societe Generale’s know-how in terms of innovation and the technical skills of Arquant Capital, we are expanding SGSS’s ability to meet the diversification needs of fund managers. »
France may not feature in the rankings of some major crypto events, but its crypto ecosystem is gradually growing
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Societe Generale, increasingly crypto-friendly, launches the first French crypto custody fund
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