On the 4th, Societe Generale, a major French bank, announced that it has issued the first digital green pound as a security token registered on the Ethereum blockchain.
Societe Generale issued digital green bond tokens worth 10 million euros (approximately 1.6 billion yen) registered by its digital assets division SG-FORGE. The digital green pound was purchased by French institutional investors AXA Investment Managers and Generali Investments and completed the first transaction.
This transaction is the first digital green pound issued by Societe Generale. The use of blockchain is said to improve transparency and traceability, and increase liquidity and speed of transactions and settlements.
The Societe Generale stablecoin was used for the issuance of the digital green pound. It is said to be an effort by Societe Generale and AXA IM to adapt to technological developments to benefit their customer base.
Societe Generale said the bond issue was also a step towards using blockchain as a data repository and authentication tool to help issuers and investors increase ESG transparency and influence data on a global scale.
The deal was carried out in two stages. First, AXA IM purchased 5 million euros (approximately 7.5 million yen) of CoinVertible stablecoin (EURCV) from Societe Generale, a digital asset on the Ethereum public chain and pegged to the euro.
It then used the acquired EURCV to purchase green pounds issued by Societe Generale in the form of security tokens on the Ethereum public chain.
The transaction on the Ethereum blockchain is part of a new experiment. In July, AXA IM served as a judge for the tokenization hackathon of Societe Generale's stablecoin issuer, Societe Generale Forge.
"The purpose of this initiative was to enable us to experiment with the use of stablecoins as a settlement asset to purchase digital bonds," said Laurence Arnold, head of innovation and strategy at AXA IM.
The ultimate aim is to adopt cutting-edge technology to optimize existing processes and provide the best possible service to our clients," he said.
Reference:Announcement
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