Societe Generale's Inaugural Green Bond Released on Ethereum Blockchain

The Third-Largest Bank in France Issues Digital Green Bond on Ethereum Blockchain

Societe Generale, the third-largest bank in France, has announced the issuance of its first digital green bond as a security token on the Ethereum public blockchain. The bond, which is valued at 10 million euros (around $11 million) and has a maturity of three years, aims to finance or refinance products and companies classified under eligible green activities.

24/7 Open Access to Carbon Footprint Data

The digital infrastructure of the bond allows for 24/7 open access to data on its carbon footprint through the bond’s smart contract. This feature enables issuers and investors to measure the carbon emissions of their securities on the financial infrastructure.

Settlement Option with EUR CoinVertible

Investors also have the option to settle securities on-chain through EUR CoinVertible, a euro-pegged stablecoin issued by Forge in April 2023. This technical option considers the upcoming wave of central bank digital currencies (CBDCs) and showcases Societe Generale’s capabilities in providing a full spectrum of on-chain services.

Societe Generale’s Activity in Crypto Sector

Societe Generale has been actively involved in the crypto sector. In addition to issuing euro bonds on the Ethereum blockchain and security tokens on the Tezos blockchain, the bank has also proposed Dai stablecoin loans in exchange for bond tokens. Forge obtained the highest access license for crypto services in France in July 2023.

Hot Take: Societe Generale Embraces Blockchain Technology for Sustainable Finance

Societe Generale’s issuance of a digital green bond on the Ethereum blockchain demonstrates its commitment to leveraging blockchain technology for sustainable finance. By utilizing smart contracts and offering open access to carbon footprint data, the bank aims to enhance transparency and accountability in green financing. The option for settlement with a stablecoin also showcases Societe Generale’s forward-thinking approach in preparation for the rise of central bank digital currencies. This move positions the bank as a leader in the adoption of blockchain technology within the financial industry.