Societe Generale Embraces Blockchain for Sustainable Finance
The third-largest bank in France, Societe Generale, has taken a significant leap in the world of sustainable finance by issuing its first digital green bond on the Ethereum blockchain. This pioneering step, executed on November 30, marks a new era in the integration of blockchain technology with environmental responsibility.
A New Wave of Financial Innovation
With a valuation of 10 million euros, this unsecured bond exhibits a three-year maturity period. The bond’s “green” designation ensures that its proceeds will be exclusively used for financing activities classified under the eligible green investments category. This move underlines Societe Generale’s commitment to supporting sustainable projects.
Technological Advancements in the Bond Structure
One of the remarkable features of this bond is the digital infrastructure it employs. It provides continuous access to data regarding its carbon footprint, which is embedded within the bond’s smart contract on the Ethereum network. This transparency allows issuers and investors to track and measure the carbon emissions associated with their financial securities.
Introducing EUR CoinVertible: A Forward-Looking Approach
Innovating further, Societe Generale introduces a technical option for on-chain settlement of securities through EUR CoinVertible, a euro-pegged stablecoin. Launched by Forge in April 2023, this option anticipates the emergence of Central Bank Digital Currencies (CBDCs), showcasing Societe Generale’s foresight in adapting to evolving digital currency landscapes.
Societe Generale’s Crypto Endeavors
Societe Generale has been progressively active in the crypto sector. Its ventures include issuing euro bonds on the Ethereum blockchain, engaging with security tokens on the Tezos blockchain, and exploring Dai stablecoin loans. In July 2023, Forge, a Societe Generale subsidiary, achieved a significant milestone by obtaining the highest access license for crypto services in France, a testament to the bank’s innovative strides in the digital finance realm.