French Bank Societe Generale Issues First Digital Green Bond on Ethereum Blockchain
Societe Generale, one of the largest banks in France, has announced that it has issued the first-ever digital green bond as a security token on the Ethereum blockchain. The move is aimed at increasing transparency and traceability surrounding Environmental, Social, and Governance (ESG) data. By leveraging the blockchain’s functionalities, Societe Generale aims to enhance transparency, traceability, and speed in transactions and settlements.
Public Availability of Carbon Footprint Information
Societe Generale plans to make information on the carbon footprint linked to the digital bond infrastructure publicly available around the clock. This will enable issuers and investors to measure the carbon emissions of their securities on the financial infrastructure.
On-Chain Settlement of Securities
The French bank also intends to enable the on-chain settlement of securities in the future, further enhancing its innovation in this space.
Past Criticism of Societe Generale’s Stablecoin
Earlier this year, Societe Generale faced criticism from Ethereum developers for its stablecoin pegged to the Euro. The developers claimed that the code was highly inefficient as each ERC20 single transfer had to be individually approved through a separate ETH transaction submitted by a centralized registrar.
Hot Take: Societe Generale Takes a Leap Towards Sustainable Finance with Digital Green Bond
Societe Generale’s issuance of the first-ever digital green bond on the Ethereum blockchain marks a significant step towards sustainable finance. By utilizing blockchain technology, the bank aims to enhance transparency, traceability, and speed in transactions and settlements related to ESG data. Furthermore, by making carbon footprint information publicly available, Societe Generale enables issuers and investors to measure the environmental impact of their securities. This move demonstrates the bank’s commitment to sustainability and its willingness to leverage innovative solutions for a greener future in the financial industry.
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