Societe Generale issues first green bond on Ethereum.

France’s third-largest bank, Societe Generale, reported that it has issued the first digital green bond as a security token on the Ethereum public blockchain. The bond, registered by Forge, a subsidiary of Société Générale, was made public on November 30.

The bond value is 10 million euros (about $11 million) and has a maturity of three years. “Green” status means that the net proceeds of these bonds will be used to finance or refinance products and companies classified in the Qualifying Green Activities (ESG) category.

Related: Tether’s ‘new era of capital raising’ Bitfinex bonds stall

The bond’s digital infrastructure provides 24/7 public access to data on carbon emissions through the bond’s smart contracts. According to the bank:

“This allows issuers and investors to measure the carbon footprint of their securities across financial infrastructure.”

Another innovation in bonds is the technical option that will allow investors to settle their securities on-chain via EUR CoinVertible, a euro-pegged stablecoin issued by Forge in April 2023. Societe Generale clearly has the coming wave of central bank digital currencies in mind. CBDC) With this option:

“While central bank digital currency (CBDC) solutions are being experimented with, this panel of payment methods demonstrates SG-FORGE’s great capabilities in providing a full range of on-chain services.”

Societe Generale has been active in the cryptocurrency sector, issuing Euro bonds on the Ethereum blockchain, issuing security tokens on the Tezos blockchain, and offering Dai stablecoin loans in exchange for bond tokens. In July 2023, Forge became the first company in France to obtain a top access license for cryptocurrency services.

magazine: Real-world AI and cryptocurrency use cases, number 4. Fighting AI fakes through blockchain