Societe Generale, the French leading financial service institution issues a 100 million (worth $ 112 million) bond on ethereum Blockchain as a security token, as per the announced by the firm on the website on April 23, yesterday.
According to the Societe generale SFH website, the institution which is the subsidiary of the French prominent specialized credit services group has announced the launch of its first pilot project into the decentralized space to facilitate Blockchain based solutions. The pilot project was created by the group subsidiary socialite generale FORGE which is one among the 60 internal startups launched by the group’s entrepreneurial program.
The statement on the website reads the company has “issued EUR 100 million of covered bonds in the form of ‘security tokens’ (home financing bonds or OFH) that are directly registered on the ethereum Blockchain. Token OFH has been rated Aaa/AAA by Moody’s and Fitch and has been fully subscribed by Societe generale (SocGen).”
Here the project aims to investigate and analyze a more efficient way for issuance of the bond as a security token that will offer numerous benefits. As per the statement in the press release, SocGen declares: “this transaction makes it possible a more efficient bond issue circuit.”
It further reads “many areas of the added value are predicated, 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 intermediates.” Moreover, the entire procedure of issuance of the euro bonds was backed by the investment bank with the collaboration of its legal, financial, compliance and operation team.
Here it must be noted that this is not the first time Societe generale has involved in Blockchain space. The institution has been a part of these space for long, for instance, it was one of the founding members of IBM powered trade project we.trade during 2017 and the Komgo SA in September 2018 to overlook a new Blockchain based project for supporting and financing the trading of commodities.
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