Societe Generale Partners with 21Shares to Provide Liquidity for Crypto ETPs

Societe Generale has partnered with 21Shares to provide over-the-counter liquidity for several crypto ETPs, including Bitcoin and Ethereum products. The deal aims to improve execution and access for institutional investors seeking regulated crypto exposure via traditional infrastructure. This collaboration reflects Societe Generale's push into blockchain and tokenized finance, aligning with the EU's MiCA regulatory rollout.

Societe Generale, the 19th-largest banking conglomerate globally, has partnered with 21Shares to provide over-the-counter (OTC) liquidity for several cryptocurrency exchange-traded products (ETPs), including Bitcoin and Ethereum products. This collaboration aims to improve execution and access for institutional investors seeking regulated crypto exposure via traditional financial infrastructure.

As part of the partnership, Societe Generale will offer liquidity and market-making services for 21Shares' Bitcoin (BTC) and Ethereum (ETH) ETPs, including funds such as ABTC, CBTC, AETH, and CETH, targeting investors in Germany and Eastern Europe. The bank's involvement is expected to enhance trade execution and reduce market friction, thereby attracting institutional investors and simplifying access to crypto assets within a regulated framework.

"This partnership marks a significant milestone in our commitment to providing innovative liquidity solutions and enhancing access to a wide range of ETFs and ETPs for our clients," said Martina Schroettle, head of ETF sales trading (UK) at Societe Generale. The bank's extensive asset base—over $1.7 trillion as of 2023—positions it to support the scaling of crypto investment products and foster greater confidence among institutional investors [1].

Societe Generale's broader blockchain initiatives also align with the partnership. In September 2024, its blockchain subsidiary, Societe Generale-FORGE, partnered with Bitpanda to promote the adoption of EUR CoinVertible (EURCV), a euro-denominated stablecoin. This initiative coincides with the implementation of the European Union's Markets in Crypto-Assets Regulation (MiCA), which provides a comprehensive regulatory framework for crypto-asset service providers [2].

The collaboration between Societe Generale and 21Shares is poised to have a transformative impact on the European crypto market. By enhancing liquidity and market accessibility, institutional investors gain a more reliable and regulated avenue to engage with Bitcoin and Ethereum through ETPs. This can lead to increased market participation, improved price discovery, and reduced volatility in crypto asset trading.

Moreover, the partnership signals a growing convergence between traditional finance and digital assets, which may accelerate the adoption of blockchain technologies across other financial products and services. As the crypto market continues to mature, such initiatives will be instrumental in fostering trust, stability, and growth within the sector.

References:
[1] https://cointelegraph.com/news/societe-generale-21shares-crypto-etp-liquidity
[2] https://en.coinotag.com/societe-generale-may-enhance-liquidity-for-21shares-bitcoin-etps-in-european-markets/