Generali Investments, via Generali Insurance Asset Management, on behalf of the French company Generali IARD, purchased on the secondary market security tokens of the digital bond issued in April 2021 by the European Investment Bank (EIB) . This transaction was carried out on the Ethereum infrastructure via Société Générale’s Forge solution, for an amount of 500,000 euros. Announced in April 2022, it continues the initiatives already undertaken by Generali since 2021 on the blockchain.
The benefits of blockchain for investors
It is a distributed database that allows information to be stored in a reliable, secure and non-modifiable manner thanks to cryptography. On the Ethereum blockchain, there is no control body, the validity being guaranteed by “miners” who check the different transactions grouped in blocks. They analyze the complete history of the blockchain using very powerful machines to run complex algorithms.
With its characteristics, the blockchain is a tool particularly suited to financial transactions. Thus, among its uses, the technological revolution of the blockchain makes it possible to directly connect institutional investors to short-circuit management companies.
Generali continues to innovate in asset management thanks to the blockchain
The Generali Group carried out its first market transaction on the public blockchain, an operation which is among the first of its kind in Europe.
“ New technologies such as blockchain are crucial for acquiring new strategic skills related to the asset management business. We are proud to be among the leading European players in this field ” commented Carlo Trabattoni, CEO of Generali Asset & Wealth Management. “This operation is part of our innovation approach. As an institutional investor, we want to accelerate in this area by experimenting with innovative technologies, in order to be ready to invest in future new ecosystems”, added Jean-Laurent Granier, CEO of Generali France.
These tools present a major asset in the transformation of asset management processes. In the near future, the digitalization of capital markets can bring considerable benefits to all stakeholders, thanks in particular to increased transparency of exchanges and the acceleration of settlement processes.
Generali shareholder and user of IZNES since 2021
This transaction is a new step in Generali’s commitment to blockchain. Indeed, since January 2021, Generali has been a shareholder of IZNES, the first pan-European platform for processing transactions on UCIs using blockchain technology. IZNES offers a complete solution, available to management companies and their investor clients, from entering into a relationship through to keeping the register. The use of IZNES blockchain technology, without recourse to banking intermediaries, facilitates access to funds, reduces transaction costs and provides an optimal level of security for institutional investors and management companies.
In January 2022, Generali placed its first subscription orders for shares in SCI ViaGénérations de Turgot AM via this platform. In addition to operations on UCIs in production since June 2021, the continued deployment of the IZNES solution on real estate fund units thus confirms its added value: a completely digital process that replaces manual processes and paper media. A ramp-up that should continue in 2022 with an expansion of funds and an increase in assets and orders carried out via the IZNES platform.