April 19, 2024
Societe Generale Makes History with Digital Green Bond on Ethereum
Altcoins News

Societe Generale Makes History with Digital Green Bond on Ethereum

Societe Generale, the third-largest bank in France, has marked a significant milestone by issuing its inaugural digital green bond as a security token on the Ethereum public blockchain. The bond, valued at 10 million euros (approximately $11 million) with a maturity of three years, was registered by Forge, a subsidiary of Societe Generale, and went public on November 30.

The digital green bond carries a “green” designation, signifying that its net proceeds will be dedicated to financing or refinancing products and companies falling under the eligible green activities category. This environmentally conscious approach aligns with the growing trend in the financial sector to promote sustainability through green investments.

Its innovative digital infrastructure sets this bond apart, providing 24/7 open access to data on its carbon footprint through the bond’s smart contract. This transparency allows issuers and investors to measure the carbon emissions associated with the securities, introducing a new level of accountability to the financial infrastructure.

Additionally, the bond introduces a technical option allowing investors to settle securities on-chain using the EUR CoinVertible, a euro-pegged stablecoin issued by Forge in April 2023. This forward-looking feature anticipates the rise of central bank digital currencies (CBDCs) and showcases Societe Generale’s commitment to offering a comprehensive range of on-chain services:

“While Central Bank Digital Currencies (CBDC) solutions are being experimented with, this panel of settlement methods demonstrates the large capabilities of SG-FORGE in providing [a] full spectrum of on-chain services.”

Societe Generale has been actively exploring opportunities in the crypto sector, previously issuing euro bonds on the Ethereum blockchain and security tokens on the Tezos blockchain. The bank has also ventured into innovative financial solutions, such as proposing Dai stablecoin loans in exchange for bond tokens. In July 2023, Forge achieved a significant milestone by becoming France’s first company to obtain the highest access license for crypto services.

The issuance of this digital green bond reaffirms Societe Generale’s commitment to embracing blockchain technology and sustainable finance, positioning itself as a pioneer in the evolving landscape of digital and environmentally conscious banking.

Image: Wallpapers.com

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