French Investment bank's Ethereum based experiment brings crypto to a $2 trillion market

French lending giant Societe Generale has become the latest traditional financial company to experiment with digital tokens.

The bank's Ethereum-based tokenized bonds have the potential to bring cryptocurrencies to a market worth over $2 trillion.

Major traditional financial companies slowly getting into digital tokens.

Digital assets have slowly penetrated the traditional financial market nonetheless, with many high-profile institutions and companies exploring the use of cryptocurrencies and blockchain technology.

The latest in line to experiment with digital tokens was the Societe Generale Group.

Last month, Societe Generale SFH, a subsidiary of Societe Generale Group, issued 100 million euros of covered bonds as a security token.

The "Obligations de financement de l'habitat" or "OFH" tokens were directly registered on the Ethereum blockchain, the group said in a statement.

SocGen's venture into digital tokens was well received by crypto evangelists as it opens more doors for the wider use of security tokens.

Finoa, a digital-asset company based in Berlin, estimates that virtual representations of assets like real estate and stocks could grow into a $24 trillion asset class in the next decade.

Romal Almazo, who leads the crypto and blockchain practice at Capco, a financial-technology consultancy, told Bloomberg that the market will take years to mature.