Key Points:
Paris-based Societe Generale, France’s third-largest listed bank, has marked a significant milestone by issuing its inaugural digital green bond on the public Ethereum blockchain.
Third-largest French Bank Pioneers Societe Generale Digital Green Bond on Ethereum
According to
Reuters, with a total value of 10 million euros ($10.87 million), the Societe Generale digital green bond has a maturity period of three years, showcasing the bank’s commitment to advancing its expertise in cryptocurrency services. AXA Investment Managers and Generali Investments, major players in the financial industry, fully subscribed to the associated security tokens through a private placement.
This move follows Societe Generale’s April 2023 introduction of the EURCV stablecoin, designed to bridge the gap between traditional capital markets and the digital asset ecosystem. Despite this initiative, skepticism has arisen from Stasis, the firm behind the euro-pegged stablecoin EURS, citing potential risks and a perceived “single point of failure” issue linked to stablecoins issued by commercial banks.
The blockchain-backed digital green bond aligns with Societe Generale’s commitment to sustainable finance. The funds raised from such green bonds are intended for projects and activities contributing to environmental benefits, such as renewable energy and low-carbon transportation.
Major Subscribers Back Societe Generale’s €10 Million Initiative
AXA Investment Managers and Generali Investments participated in the private placement, demonstrating a growing interest in blockchain-based tokenized securities, which represent ownership of traditional financial assets like bonds. The bank executed the Societe Generale digital green bond issuance through its crypto unit, Forge, showcasing the bank’s dedication to embracing the potential of blockchain technology.
This groundbreaking move comes in the wake of the European Investment Bank’s recent launch of its second euro-denominated digital bond on a private blockchain. Societe Generale collaborated with the European Investment Bank on this initiative, alongside Goldman Sachs Bank Europe and Santander, reinforcing the bank’s active role in shaping the future of digital finance.
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