Societe Generale Launches First Digital Green Bond on Ethereum Blockchain
Summary:
Societe Generale, the third-largest bank in France, has launched its first digital green bond as an Ethereum blockchain security token. The bond is valued at around $11 million and will finance or refinance firms and products designated as green activities. The bond's digital structure provides continuous access to its carbon footprint data, assisting in measuring carbon emissions. Also, the bond introduces an option for securities settlement via the EUR CoinVertible, a stablecoin due for launch in April 2023.
France's third biggest banking institution, Societe Generale, has announced the issuance of its inaugural digital environmental-friendly bond as an Ethereum blockchain security token. This bond, launched to the public on the last day of November, was registered by Forge - a Societe Generale subsidiary. Valued at approximately $11 million (10 million euros), this bond matures in three years and is labeled as “green”, denoting that its overall proceeds will fund or provide refinancing for companies and products recognized under the approved green activities sector. As part of Tether's 'new epoch for capital raises', any data related to the bond's carbon footprint is continually accessible since the bond's digital framework enables it. The bank adds that this feature aids both investors and issuers in calculating their financial infrastructure's carbon emissions. The bond also introduces a unique tech-enabled option permitting investors to settle securities through the EUR CoinVertible, a stablecoin issued by Forge and pegged to the euro, due for launch in April 2023. It is expected to prepare Societe Generale for the anticipated surge in central bank digital currencies (CBDCs). The bank, a keen player in the cryptocurrency field, has previously issued euro bonds on the Ethereum blockchain, security tokens on the Tezos blockchain, and has also suggested Dai (DAI) stablecoin loans against bond tokens. In July 2023, Forge became the first firm to receive the highest level crypto services access permit in France.
Published At
12/5/2023 2:03:36 PM
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