Paris, France, Tuesday, December 18, 2023 – In a first for the financial industry, Societe Generale, the French banking giant, issued a €10 million green bond directly on a public blockchain on Monday, December 4. 1
This move, a three-year senior preferred unsecured bond, utilizes Societe Generale’s dedicated blockchain platform, SG-Forge, and registers the bond on the Ethereum public blockchain.
The shift away from traditional centralized systems offers several key benefits, reports said.
Firstly, it enhances transparency as investors gain direct access to detailed bond information and transaction history on the blockchain. This accessibility fosters trust and diminishes the likelihood of information manipulation.
Additionally, the blockchain streamlines settlement processes by removing intermediaries, resulting in quicker and more efficient transaction settlements. This has the potential to reduce costs for both issuers and investors.
Another notable benefit is the possibility of fractional ownership facilitated by the public blockchain, which could broaden participation in green investment opportunities to a more extensive range of investors.
The radical issuance aligns with Societe Generale’s broader sustainability initiatives, including its €130 billion green and sustainable finance commitment for 2022–2025.
Reports speculated that by adopting blockchain technology, the bank aims to contribute to a more transparent and inclusive green finance ecosystem.
- Societe Generale: https://www.societegenerale.com/en/news/press-release/first-inaugural-digital-green-bond-public-blockchain[↩]
