Key points to remember:
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Société Générale joins 21Shares as an OTC liquidity partner for Bitcoin and Ethereum ETPs.
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This partnership primarily targets institutional investors in Germany and Eastern Europe.
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The goal is to improve liquidity, execution quality, and price stability on these regulated crypto products.
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The bank leverages its robust infrastructure and expertise to handle large transaction volumes.
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This collaboration is part of Société Générale’s broader digital assets strategy, especially in line with the European MiCA regulation.
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At the same time, the bank is developing its blockchain projects through its subsidiary Société Générale-FORGE and the EUR CoinVertible (EURCV) stablecoin.
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Société Générale reaffirms its commitment to crypto.
Société Générale, the world’s 19th largest bank by asset volume, strengthens its involvement in digital assets by signing a strategic partnership with 21Shares, a recognized issuer of listed crypto financial products (ETPs). This agreement aims to provide over-the-counter (OTC) liquidity services for Bitcoin and Ethereum ETPs in German and Eastern European markets.
What is an ETP and why OTC liquidity?
An ETP (Exchange-Traded Product) is a financial product listed on a stock exchange that allows investors to gain exposure to an underlying asset—in this case, cryptocurrencies like Bitcoin or Ethereum. OTC liquidity refers to trades executed outside traditional public exchanges, enabling large transactions without impacting market prices. This mechanism is crucial to offer institutional investors secure, seamless access adapted to their volumes.
Société Générale as market maker for Bitcoin and Ethereum ETPs
Concretely, Société Générale acts as a market maker and OTC liquidity provider for 21Shares’ flagship ETPs: ABTC and CBTC (Bitcoin), and AETH and CETH (Ethereum). This intervention aims to optimize execution quality, reduce price spreads, and ensure sufficient liquidity, addressing the growing demand from institutional investors.
OTC transactions thus help avoid the excessive volatility often observed on public exchanges, offering greater price stability.
A priority target: Germany and Eastern Europe
The partnership focuses on institutional investors in Germany and Eastern Europe, regions where demand for regulated crypto products is growing rapidly. By integrating these ETPs into its trading infrastructure, Société Générale facilitates broader and safer access to these digital assets.
A digital strategy at the heart of banking transformation
Martina Schroettle, Head of ETF Trading in the UK for Société Générale, emphasizes:
“This collaboration marks an important step in our commitment to innovate around liquidity and democratize access to crypto ETFs and ETPs for our European clients.”
Alistair Byas-Perry, Global Head of Investments at 21Shares, adds:
“Working with a major player like Société Générale enables us to offer reliable, high-performance, and accessible crypto investment solutions.”
A solid infrastructure serving crypto
With over $1.7 trillion in assets under management in 2023 (source: S&P Global), Société Générale leverages its expertise and infrastructure to support large trading volumes on crypto ETPs. This alliance illustrates the growing convergence between traditional finance and digital assets, at a time when the European regulatory framework continues to take shape with the progressive implementation of the MiCA regulation.
An expanded blockchain commitment
Beyond this partnership, Société Générale is also developing its blockchain projects via its subsidiary Société Générale-FORGE. In September 2024, it partnered with Bitpanda to promote the adoption of the EUR CoinVertible (EURCV) stablecoin, pegged to the euro. This initiative precedes the full application of MiCA, the first comprehensive regulation governing digital asset service providers in Europe.
This partnership between Société Générale and 21Shares illustrates the growing presence of traditional financial institutions in the crypto sector. It aims to offer institutional investors regulated, reliable, and high-performance solutions to access major cryptocurrencies, while ensuring greater liquidity and market stability.
