Societe Generale, France’s third-largest bank, has marked a milestone by launching its inaugural digital green bond as a security token on the public Ethereum blockchain. The bond, introduced by Forge, a subsidiary of Societe Generale, made its debut on November 30.
Valued at 10 million euros (approximately $11 million) and maturing in three years, this groundbreaking bond focuses on supporting eligible green activities, directing all proceeds towards financing or refinancing environmentally friendly products and firms.
The innovative digital infrastructure of this bond offers uninterrupted access to its carbon footprint data through its embedded smart contract. The bank emphasizes that this feature allows both issuers and investors to evaluate the carbon emissions associated with these securities within the financial framework.
Another key innovation accompanying this bond is an option for investors to settle securities on-chain utilizing the EUR CoinVertible, a euro-pegged stablecoin introduced by Forge in April 2023. This forward-thinking approach aligns with the evolving landscape of Central Bank Digital Currencies (CBDCs):
“As Central Bank Digital Currencies (CBDC) solutions are under experimentation, this range of settlement options highlights SG-FORGE’s extensive capabilities in delivering a complete suite of on-chain services.”
Societe Generale has been actively engaged in the crypto domain, issuing euro bonds on the Ethereum blockchain, security tokens on the Tezos blockchain, and pioneering Dai stablecoin loans in exchange for bond tokens. In a significant move in July 2023, Forge became the first entity to secure the top-tier license for crypto services in France.
