Societe Generale Issues First Covered Bond As A Security Token On The Ethereum Network

Societe Generale SFH, a subsidiary of Societe Generale Group, has issued €100 million (U$D 112.12 million) of covered bonds as a security token. These bonds are currently registered on the Ethereum (ETH) blockchain. The information was released by the company a few hours ago in a press release.

Societe Generale Issues Covered Bond On The Ethereum Blockchain

According to the press release, these OFH tokens have been rated Aaa / AAA by Moody’s and Fitch and have also been fully subscribed by Societe Generale. This is the first pilot project that is conducted by Societe Generale and Societe Generale FORGE, a startup that was launched using the INternal Startup Call. The goal is to analyze and experiment with different disruptive technologies and business solutions that use blockchain technology and develop digital capital markets activities and more.

One of the biggest banks in France, Societe Generale, just issued the first covered bond (worth EUR 100m) as a security token on the public Ethereum network 🚀

— Anthony Sassano | sassal.eth 🍩 (@sassal0x) April 23, 2019

With these transactions, it is possible to make bond issuing processes much more efficient. The new process includes faster transferability and settlements, improved transparency and enhanced scalability.

The report reads as follows:

“The operation was made possible thanks to the teams of the Finance, Legal, Compliance and Operations departments of the Bank. Gide Loyrette Nouel was appointed as legal advisor to the OFH Token issuer and PwC France and francophone Africa was involved as blockchain advisor.”

According to the company, innovation is at the core of Societe Generale’s DNA. At the same time, they explained that they speed up the digital transformation by using new technologies that allow them to innovate and serve their clients.

This is not the first time that Societe Generale is involved in a blockchain initiative. In the past, they worked on the we-trade finance platform based in blockchain technology that is available to all corporate clients in France. Furthermore, they launched komgo SA in order to digitalize the trade and commodities finance sector using distributed ledger technology (DLT).