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Societe Generale Issues First Covered Bond (EUR 100m) As a Security Token on the Ethereum Blockchain

Societe Generale Issues First Covered Bond (EUR 100m) As a Security Token on the Ethereum Blockchain

Societe Generale SFH, a subsidiary of the Societe Generale Group, announced yesterday that it issued covered bonds worth EUR 100 million as security tokens via the Ethereum network. This is the first time the lending firm has made such a move as it explores ways to use blockchain technology to ease financial transactions.

EUR 100 Million Covered Bonds Issued on a Public Blockchain
In an official blog post by the company, Societe Generale revealed that its subsidiary, SFH issued covered bonds as security tokens on a public blockchain on April 18. The covered bonds, also known as obligations de financement de l’habitat or OFH, were worth over EUR 100 million.

Societe Generale worked with Societe Generale FORGE to carry out this project. FORGE is one of the numerous internal establishments introduced via its Internal Startup Call program. The startup has been tasked with using blockchain tech to develop new activities for the digital capital market.

Covered bonds are a type of security that is backed by specific assets but remain on the balance sheet of the issuer. Societe Generale explains that this live settlement could pave the way for the bond issuance process to become more efficient.

It also adds value to the process by increasing the scalability of products, decreasing the time to market, and enabling computer code automation structuring. These values help boost transparency, enables faster transaction times, and reduce transaction fees and the number of mediators. The company attributes this latest achievement to its legal, finance, and Compliance and Operations teams.

Original link: https://blokt.com/news/societe-generale-issues-first-covered-bond-eur-100m-as-a-security-token-on-the-ethereum-blockchain

  • 2019-04-24