SocGen Issues Ethereum-Based Digital Green Bond
French financial service giant Societe Generale announced yesterday that it has issued a 10 million euro digital green bond directly on the public Ethereum blockchain. This marks the first time SocGen has leveraged blockchain technology for bond issuance.
The three-year senior unsecured bond was fully subscribed by institutional investors AXA Investment Managers and Generali Investments via private placement. Societe Generale stated that using a public blockchain provides increased transparency and traceability compared to traditional bonds.
Specifically, the bond's smart contract publishes real-time carbon emissions data linked to the digital infrastructure. This innovation enables issuers and investors to continuously monitor the environmental impact of financial securities.
SocGen's blockchain subsidiary SG-FORGE registered the security tokens. Back in April, SG-FORGE launched its own euro-stablecoin dubbed EUR CoinVertible to provide flexible settlement options. Investors in this latest bond had the choice to redeem their tokens for fiat currency or exchange them for EUR CoinVertible directly on-chain.
As one of France's largest banks, Societe Generale has positioned itself at the forefront of blockchain adoption in capital markets. The group previously participated in the first-ever digital bond issuance by the European Investment Bank in 2021.
