Blockchain Bonds | Dec 6, 2023

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Societe Generale launches the first digital green bond on a public blockchain, marking a significant step in sustainable finance

Societe Generale, a major French bank, has issued its inaugural digital green bond on the Ethereum public blockchain. This move represents a significant advancement in the integration of blockchain technology in sustainable finance. The bond, valued at EUR 10 million with a three-year maturity, is aimed at financing green activities and demonstrates enhanced transparency and efficiency in financial transactions.

See:  Societe Generale: Lists First Security Tokens Utilizing Blockchain on Luxembourg Stock Exchange

• The bond is issued as a Security Token on the Ethereum blockchain, enhancing transparency and traceability, particularly for ESG (Environmental, Social, and Governance) data.
• Proceeds from the bond are dedicated to financing or refinancing eligible green activities, aligning with Societe Generale’s commitment to sustainable and positive impact financing.
• The bond’s smart contract provides 24/7 open access to data on its carbon footprint transparency, allowing issuers and investors to monitor the environmental impact of their securities.
• Societe Generale is the first big bank to launch a stablecoin introducing an option for on-chain settlement of securities using EUR CoinVertible, a digital asset, complementing traditional cash settlement solutions.
• This issuance is a step towards using blockchain as a data repository and certification tool for ESG data on a global scale, potentially transforming how sustainable investments are tracked and managed.

Why It’s Important

This innovative approach could pave the way for more widespread adoption of blockchain in ESG-focused financial products, offering a new level of transparency and accountability in sustainable finance.

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