French financial service giant issues first ever digital green bond on public blockchain.
French financial service giant Societe Generale announced
yesterday that it has issued a 10 million euro digital green bond directly on the public Ethereum blockchain. This marks the first time SocGen has leveraged blockchain technology for bond issuance.
The three-year senior unsecured bond was fully subscribed by institutional investors
AXA Investment Managers and Generali Investments via private placement. Societe Generale stated that using a public blockchain provides increased transparency and traceability compared to traditional bonds.
Specifically, the bond's smart contract
publishes real-time carbon emissions data linked to the digital infrastructure. This innovation enables issuers and investors to continuously monitor the environmental impact of financial securities.
SocGen's blockchain subsidiary SG-FORGE registered the security tokens. Back in April, SG-FORGE launched its own euro-stablecoin dubbed EUR CoinVertible to provide flexible settlement options. Investors in this latest bond had the choice to redeem their tokens for fiat currency or exchange them for EUR CoinVertible directly on-chain.
As one of France's largest banks, Societe Generale has positioned itself at the forefront of blockchain adoption in capital markets. The group previously participated in the first-ever digital bond issuance by the European Investment Bank in 2021.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.