Societe Generale, France’s third-largest bank, has marked a significant milestone by issuing its inaugural digital green bond as a Security Token on the Ethereum public blockchain. The bond, facilitated by Forge, a subsidiary of Société Générale, was publicly launched on November 30.
Valued at 10 million euros (approximately $11 million) and featuring a three-year maturity, the “green” bond commits all net proceeds to finance or refinance products and companies falling under the Eligible Green Activities (ESG) category.
One notable feature of this digital bond is its transparent carbon footprint data, accessible 24/7 through the bond’s smart contract. Societe Generale emphasized that this functionality empowers issuers and investors to gauge the carbon emissions associated with their securities within the financial infrastructure.
In a statement, Societe Generale highlighted another innovative aspect of the bond, offering a technical option for investors to settle securities on-chain using the EUR CoinVertible. This stablecoin, pegged to the euro, was issued by Forge in April 2023. The move anticipates the evolving landscape of central bank digital currencies (CBDCs), with Societe Generale expressing confidence in SG-FORGE’s ability to provide a full spectrum of on-chain services amid CBDC experimentation.
Societe Generale has been actively exploring opportunities in the crypto space, previously issuing euro bonds on the Ethereum blockchain and security tokens on the Tezos blockchain. Additionally, the bank has ventured into novel financial services, such as Dai stablecoin loans in exchange for bond tokens. In July 2023, Forge achieved a significant milestone by becoming the first company to secure the highest access license for crypto services in France.
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