Societe Generale, the third largest bank in France, recently announced the issuance of the world’s first digital green bond. The senior preferred unsecured bond was issued via Ethereum, with an initial transaction value of 10 million Euros ($10.79 million). The bond was issued as a Security Token Registering directly by Societe GeneraleForge on the Ethereum public blockchain, with the net proceeds from the sale of eligible green products and projects distributed to those who qualify.
The EUR CoinVertible, a stablecoin pegged to the euro, allows for a new way of settling securities. Issued in April, the solution is complementary to traditional cash settlement. Societe Generale states that the benefits of the EUR CoinVertible’s on-chain solution are evident, as countries continue to experiment with Central Bank Digital Currencies (CBDCs).
Societe Generale is the largest financial institution to use blockchain technology for the issuance of eurobonds, including in partnership with the European Investment Bank (EIB) on the Ethereum blockchain. The bank has also issued security tokens on the Tezos platform.