Societe Generale Executes Groundbreaking Blockchain Transaction Using Tokenized Bonds

Societe Generale, a major European financial institution, has completed a pioneering blockchain transaction, utilizing tokenized bonds initially issued in 2020.

These tokenized bonds are digital versions of traditional bonds, enabling them to be traded and managed on the Ethereum blockchain.

The blockchain’s inherent immutability ensures that ownership and transaction records for these digital assets remain secure and tamper-proof. Through its subsidiary, FORGE, Societe Generale successfully carried out a transaction using these tokenized bonds on Ethereum.

In the deal, the bonds were used as collateral in exchange for a central bank digital currency (CBDC) issued by France’s central bank, Banque de France, through its DL3S blockchain platform.

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This marks the first-ever use of a repurchase agreement (repo) involving a Eurosystem member on a blockchain. A repo is a short-term transaction where securities are sold with an agreement to repurchase them later at a higher price.

This transaction demonstrates the feasibility of conducting interbank refinancing operations on a blockchain, highlighting how Central Bank Digital Currencies (CBDCs) could enhance liquidity in digital financial markets.

Alexander Zdravkov