flatexDEGIRO, Société Générale and SG-FORGE cooperate with Seturion to build a European infrastructure for tokenized securities

The digitalization of the capital markets in Europe continues to gather pace. The Boerse Stuttgart Group is bringing its settlement platform Seturion together with several heavyweights in the financial sector. Together with flatexDEGIRO, Société Générale and SG-FORGE, an open pan-European infrastructure for the blockchain-based settlement of tokenized securities is to be created.

The partnership will focus on building a more efficient, cost-effective and interoperable securities settlement system that will support a single European capital market in the long term.

Seturion to become the central European settlement platform

Seturion was developed by the Boerse Stuttgart Group as an open industry solution for digital securities settlement. Banks, brokers and trading venues should be able to easily connect to the platform. The platform supports both public and private blockchains and enables settlement against on-chain money. This includes MiCA-compliant stablecoins as well as central bank money in the future.

While structured securities are the initial focus, Seturion is fundamentally designed for all asset classes.

With Seturion, we are building the European settlement platform for the single European capital market that will emerge as part of the Capital Markets Union.

Dr. Matthias Voelkel, CEO of the Boerse Stuttgart Group

Société Générale plans tokenized structured securities

As part of the cooperation, Société Générale plans to issue tokenized structured products such as certificates and warrants via Seturion. The products will then be listed and traded on European trading venues that are connected to the platform.

Transactions will be processed via SG-FORGE's CoinVertible stablecoins, which are pegged to both the euro and the US dollar.

Jean-Marc Stenger, CEO of SG-FORGE, explains:

'By enabling secure on-chain settlement through MiCA-compliant stablecoins, we are making a key contribution to realizing the efficiency gains through this new partnership.

Jean-Marc Stenger, CEO of SG-FORGE

flatexDEGIRO brings in European retail flow

flatexDEGIRO will also play an important role within the network. The online broker with more than 3.5 million customers in 16 European countries will connect the platform to its European retail flow.

This will give the trading venues connected to Seturion direct access to private investors in Europe.

Oliver Behrens, CEO of flatexDEGIRO, emphasizes:

'The tokenization of securities has enormous potential in this area and we are delighted to be pioneering this groundbreaking development with other strong partners.

Oliver Behrens, CEO flatexDEGIRO

Blockchain infrastructure to reduce costs and complexity

The partners see great potential for efficiency gains through blockchain technology, particularly in securities settlement. By using a shared digital infrastructure, settlement cycles are to be shortened, costs reduced and the currently highly fragmented European settlement landscape modernized. If the plan succeeds, the additional settlement option will have a positive impact on prices. Sooner or later, these changes will also reach private investors.

Seturion is deliberately positioning itself as an open platform for banks, brokers and exchange operators.

Dr. Lidia Kurt, CEO of Seturion, explains:

'Our partnership with flatexDEGIRO, Société Générale and SG-FORGE is an important step as it illustrates the huge benefits for buy-side and sell-side - significantly lower costs, high reliability and shorter settlement cycles.

Dr. Lidia Kurt, CEO of Seturion

Europe's capital market infrastructure on the brink of upheaval

The partnership shows how strongly the topic of tokenization has now arrived in the European financial sector. While regulatory initiatives such as MiCA and the European Capital Markets Union are creating the framework conditions, market participants are increasingly working on concrete industrial applications.

With Seturion, an infrastructure is now being created that could play a central role in the digital transformation of European capital markets in the long term.