Societe Generale has revealed that on April 18 its subsidiary, Societe Generale SFH, issued €100 million of covered bonds as a security token (OFH), directly registered on the Ethereum blockchain.
The OFH tokens have been rated Aaa / AAA by Moody’s and Fitch and have been fully subscribed by Societe Generale.
This operation is the first pilot project developed by one of the 60 internal startups that form part of Societe Generale’s intrapreneurial programme.
“This live transaction explores a more efficient process for bond issuances. Many areas of added value are predicted, among which, product scalability and reduced time to market, computer code automation structuring, thus better transparency, faster transferability and settlement. It proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries,” says the French bank in a release announcing the issuance.
This is the latest in a series of major blockchain initiatives announced by Societe Generale, which has made its blockchain-based trade finance platform, we.trade, available to all its corporate clients in France and launched Komgo SA in September 2018, which aims to digitalise the trade and commodities finance sector through a blockchain based open platform.