Societe Generale, a global financial corporation based in France, launched its inaugural digital green bond on a blockchain network.
The Paris-based banking business reportedly possesses senior preferred unsecured notes with a three-year maturity valued at close to $11 million on the Ethereum (ETH) blockchain.
Generali Investments and AXA Investment Managers “fully subscribed the related security tokens through private placement,” the bank continued. In particular, EUR CoinVertible (EURCV), Societe Generale’s euro-denominated ERC-20 stablecoin, was purchased and used by AXA Investment for €5 million.
The bank intends to use the money raised for environmental projects, such as low-carbon transportation and renewable energy. In an effort to close the gap between the ecosystem of digital assets and traditional capital markets, Societe Generale unveiled the EURCV stablecoin in April 2023.
Stasis, the company that created the euro-pegged stablecoin EURS, expressed doubt about the news, pointing out possible hazards and the “single point of failure” issue with stablecoins issued by commercial banks.
Stasis wasn’t the only business to cast doubt on Société Générale’s cryptocurrency endeavor; other experts also brought out the fact that EURCV’s smart contract depends on a centralized registrant, most likely one under the bank’s control.