According to a report by CoinDesk, French banking giant Societe Generale announced on Monday (4th) that it has completed its first tokenized green bond issuance on the Ethereum network.
Societe Generale issued a digital green bond worth 10 million euros (approximately 10.8 million US dollars) with a maturity of 3 years. These tokenized securities are registered by the bank’s subsidiary SG-FORGE, responsible for digital assets, and have been fully subscribed through private placement by traditional financial institutions AXA IM and Generali Investments.
According to a press release, Societe Generale will use the net proceeds from the bond sale to fund sustainable activities or refinancing. The bank stated that the digital format of the bond provides higher transparency and traceability, as well as faster trading and settlement speeds.
Societe Generale stated that the issuance of this bond “also serves as a tool for storing and certifying data for issuers and investors using blockchain, the first step in enhancing ESG and impact data transparency globally.”
AXA’s asset management arm, AXA IM, stated in a press release that as part of a joint blockchain experiment, the company representing the AXA Group used the euro stablecoin EURCV launched by SG-FORGE to purchase 5 million euros worth of bonds issued by Societe Generale.
Laurence Arnold, Head of Innovation and Strategy at AXA Investment Managers, stated: