Ethereum hosts Societe Generale’s digital green bond worth €10m.
Societe Generale, the French multinational financial conglomerate, has made history by issuing its inaugural digital green bond on a blockchain network. As reported by Reuters, the banking group, headquartered in Paris, has successfully placed nearly $11 million worth of senior preferred unsecured bonds with a three-year maturity on the Ethereum blockchain. The bank also revealed that AXA Investment Managers and Generali Investments fully subscribed to the associated security tokens through a private placement.
Of particular note is AXA Investment’s acquisition and expenditure of €5 million worth of Societe Generale’s euro-denominated ERC-20 stablecoin, known as EUR CoinVertible (EURCV). The bank intends to use the funds generated from this transaction for environmentally beneficial projects, such as renewable energy initiatives and low-carbon transportation.
Societe Generale had introduced its EURCV stablecoin in April 2023, with the aim of bridging the gap between traditional capital markets and the digital asset ecosystem. However, this announcement was met with skepticism from Stasis, the company behind the euro-pegged stablecoin EURS. Stasis highlighted potential risks and the issue of a “single point of failure” associated with stablecoins issued by commercial banks.
Stasis was not alone in questioning Société Générale’s foray into the world of cryptocurrencies. Other analysts also raised concerns, pointing out that the functionality of EURCV’s smart contract relies on a centralized registrar, likely to be controlled by the bank.
For more information, please read: French bank Societe Generale issues $122m covered bond on Ethereum network.
