Société Générale uses digital securities and blockchain-based CBDC to complete a collateralized market transaction with Banque de France successfully.
The National Bank of France, the Banque de France, and Société Générale, the country’s third-largest bank by total assets after BNP Paribas and Crédit Agricole, have finished a blockchain-based repo deal.
The transaction featured bonds produced on the Ethereum blockchain, which were used as collateral in exchange for central bank digital currency from the Banque de France, according to a news release released by the French bank on December 13.
The release claims this is the first repo transaction utilizing digital securities with a central bank, demonstrating how blockchain technology may streamline interbank processes like refinancing. Additionally, it highlights how CBDCs might improve liquidity in online financial markets. Société Générale:
Société Générale deposited as collateral with the Banque de France some bonds issued in 2020 on the public Ethereum blockchain in exchange for CBDC issued by the Banque de France on its DL3S blockchain.”
The deal comes after Société Générale’s recent foray into blockchain technology through the issuance of digital green bonds.
AXA Investment Managers and Generali Investments completely subscribed for the bank’s almost $11 million senior preferred unsecured bonds issued on the Ethereum blockchain in December 2023.
The purchase was made by AXA Investment using EUR CoinVertible, a stablecoin valued in euros and issued by Société Générale.
The revenues were used to fund environmental projects. According to the bank’s news release, Société Générale’s subsidiary SG-FORGE, which was established in 2018 to facilitate the issue, maintenance, and settlement of digital assets, spearheaded the most recent repo deal.
