Societe Generale Issues First Green Bond on Ethereum

French Bank Societe Generale Launches Digital Green Bond on Ethereum Blockchain

Societe Generale, the third-largest bank in France, has announced the issuance of its first digital green bond on the Ethereum public blockchain. The bond, valued at €10 million (approximately $11 million), was registered by Forge, a subsidiary of Societe Generale, and became publicly available on November 30.

Green Bond Finances Eligible Green Activities

The bond is classified as "green," meaning that the net proceeds will be used to finance or refinance products and companies classified under the Eligible Green Activities (ESG) category. This aligns with Societe Generale's commitment to sustainable investment and environmental initiatives.

Transparent and Innovative Digital Infrastructure

One of the key features of the bond is its digital infrastructure, which provides 24/7 open access to data on its carbon footprint through the bond's smart contract. This allows issuers and investors to accurately measure the carbon emissions of their securities on the financial infrastructure.

On-Chain Settlement and Future CBDC Compatibility

In addition to its green credentials, the bond also offers a technical option for investors to settle securities on-chain through the EUR CoinVertible, a euro-pegged stablecoin issued by Forge. This innovative settlement method demonstrates Societe Generale's anticipation of the future adoption of central bank digital currencies (CBDCs).

Active Involvement in the Crypto Sector

Societe Generale has been actively exploring opportunities in the crypto sector. They have previously issued euro bonds on the Ethereum blockchain, security tokens on the Tezos blockchain, and proposed Dai stablecoin loans in exchange for bond tokens. In July 2023, Forge became the first company to obtain the highest access license for crypto services in France.

By embracing blockchain technology and sustainable finance, Societe Generale is positioning itself as a trailblazer in the digital and green finance realms.