France's third-largest bank, Societe Generale, reported issuing its first digital green bond as a security token on the public Ethereum blockchain. The bond, registered by Forge, a subsidiary of Sociรฉtรฉ Gรฉnรฉrale, was public on November 30.
The bond is worth 10 million euros (about $11 million) and has a maturity of three years. Its โgreenโ status means that the net proceeds of this bond will be used to finance or refinance products and companies classified in the Eligible Green Activities (ESG) category.
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The bond's digital infrastructure grants 24/7 open access to data about your carbon footprint through the bond's smart contract. According to the bank:
"This allows issuers and investors to measure the carbon emissions of their securities in the financial infrastructure."
Another innovation of the bond is a technical option for investors to settle securities on-chain through the EUR CoinVertible, a euro-pegged stablecoin issued by Forge in April 2023. Societe Generale clearly takes into account the next wave of central bank digital currencies (CBDC) with this option:
โWhile piloting central bank digital currency (CBDC) solutions, this settlement methods panel demonstrates SG-FORGEโs strong capabilities in providing a full spectrum of on-chain services.โ
Societe Generale has been quite active in the cryptocurrency sector, euro bond issues on the Ethereum blockchain and security tokens on Tezos blockchain and propose Dai stablecoin loans on exchange for bond tokens. In July 2023, Forge became the first company to obtain the highest access license for crypto services in France.
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