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Societe Generale Issues EUR 100 Mln Bond On Ethereum Blockchain


French banking major Societe Generale's covered bond vehicle Societe Generale SFH has issued 100-million euros-covered bond as a security token on the Ethereum blockchain.

In a statement, the lender said, "obligations de financement de l'habitat" or OFH Tokens, backed by covered bonds, have been rated Aaa / AAA by Moody's and Fitch and have been fully subscribed by the parent.

Societe Generale SFH unveiled its pilot project together with Societe Generale FORGE, an internal startup that works on nlockchain technology -based disruptive business solutions to develop new digital capital market activities.

The live transaction focuses on a more efficient process for bond issuances resulting in 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 intermediaries," the company said.

In early April, Societe Generale-owned private bank, Kleinwort Hambros, had launched a new blockchain exchange traded note or ETN. The Luxembourg-listed, actively managed blockchain note would be available exclusively to existing and prospective clients with a minimum investment of 1,000 pounds.

Societe Generale is part of a consortium of major banks and trading and energy companies that had created the Vakt commodity trade blockchain platform last year for post-trade processing and management for commodities.

The lender earlier launched komgo SA to digitalize the trade and commodities finance sector through a blockchain-based open platform.

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