Societe Generale, one of the largest banks in France, has made history by issuing the first ever digital green bond on a public blockchain. This significant move demonstrates the bank’s commitment to sustainable finance and utilizing innovative technology to support environmentally friendly projects.
The digital green bond, which is a senior preferred unsecured bond, was issued on the Ethereum blockchain and registered on November 30th. The bond has an inaugural value of 10 million euros and a maturity period of three years. Importantly, the net proceeds from the bond will be directed towards financing eligible green projects and activities, furthering Societe Generale’s dedication to environmental sustainability.
In addition to the issuance of the digital green bond, Societe Generale has also introduced the EUR CoinVertible (EURCV), a euro-pegged stablecoin that allows investors to settle securities on-chain. This stablecoin provides an alternative to traditional cash settlement and aligns with the bank’s efforts to embrace blockchain technology in its operations. Notably, the bank sees the benefits of on-chain solutions in the context of ongoing experiments with Central Bank Digital Currencies (CBDCs) in various countries.
Societe Generale’s foray into digital green bonds and blockchain technology exemplifies its position as a leader in the finance industry. The bank has previously issued euro bonds on the Ethereum blockchain, including in collaboration with the European Investment Bank (EIB), and has also ventured into issuing security tokens on Tezos. These initiatives underscore the bank’s proactive approach to leveraging blockchain for financial transactions and its commitment to driving innovation in the sector.
This milestone achievement by Societe Generale not only highlights the potential for blockchain technology to transform the finance industry, but also emphasizes the growing importance of sustainable finance and investing in green initiatives. As more financial institutions embrace blockchain and digital assets, the issuance of digital green bonds could become more commonplace, contributing to the advancement of environmental sustainability and responsible investing.
With this groundbreaking development, Societe Generale has set a precedent for other financial institutions to follow suit and explore the possibilities of digital green bonds and blockchain-based financing for green projects. As the world continues to prioritize sustainability and environmental stewardship, the integration of innovative financial instruments like digital green bonds can play a pivotal role in advancing these goals.