Société Générale (SocGen), France’s third-largest listed bank, made its entry into blockchain-based financial solutions by releasing its first digital green bond — totaling €10 million — on a public blockchain, according to a Dec. 4 press release.
The European Investment Bank’s (EIB) recent digital bond launch on a private blockchain set the stage for the French bank’s move, demonstrating progress towards blockchain technology adoption in the global finance industry.
This issuance not only showcases the growing confidence in blockchain as a transformative tool for sustainable finance but also signifies the increasing digitalization within the financial sector.
Green bond on Ethereum
SocGen’s digital unit SG-FORGE issued the bond as a security token on the Ethereum public blockchain on Nov. 30.
The bond was structured as a three-year senior preferred unsecured bond. The proceeds will be used for financing or refinancing activities aligned with Societe Generale’s Sustainable and Positive Impact Bond framework.
AXA Investment Managers and Generali Investments, two major institutional investors, fully subscribed to the bond via private placement. Notably, AXA IM utilized Societe Generale’s euro-denominated stablecoin, EUR CoinVertible, for a significant part of the investment.
Settlement through digital currency
The enhanced transparency and traceability of ESG data in the digital green bond, enabled by blockchain technology, is a highlight per the French bank.
The digital green bond introduces some key market features. It offers continuous access to data on the carbon footprint associated with the bond infrastructure through its smart contract, allowing for effective monitoring of the environmental impact of financial securities.
Additionally, the bond provided an innovative settlement option using EUR CoinVertible, a digital asset issued by SG-FORGE in April 2023, as well as traditional cash settlement methods.
This issuance underscores SocGen’s strategic focus on crypto services and digital instruments. It also showcases the bank’s commitment to expanding its debt capital market capabilities to cater to the rising demand for digital assets, especially those with ESG considerations.
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**Meta Description:** Société Générale, France’s third-largest bank, issues its first digital green bond on the Ethereum public blockchain, highlighting the growing adoption of blockchain technology in sustainable finance.
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**H1:** Société Générale Issues First Digital Green Bond on Blockchain
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1. Green bond on Ethereum
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