Société Générale successfully carries out collateralized market transactions with the Banque de France using digital securities and CBDC on the blockchain.
Société Générale, FranceThe third-largest bank by total assets after BNP Paribas and Crédit Agricole has completed one Blockchain-based repo business with the Banque de France, the national bank of France.
In a December 13th Press releasethe French bank said the deal involved bonds issued on Ethereum (ETH) Blockchain that were used as collateral in exchanges Central bank digital currency from the Banque de France.
According to the announcement, this is the first repo transaction with a central bank using digital securities and shows how blockchain technology can facilitate interbank transactions such as refinancing. It also highlights the potential of CBDCs to improve liquidity in digital financial markets.
“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.”
Société Générale
The transaction follows Société Générale’s recent entry into the blockchain with the issuance of digital green bonds. In December 2023 the bank will issued Nearly $11 million in uncollateralized senior preferred bonds on the Ethereum blockchain, fully underwritten by AXA Investment Managers and Generali Investments. AXA Investment used Société Générale’s euro-denominated stablecoin, EUR CoinVertible, for the purchase, with the proceeds going to environmental projects.
The latest repo transaction was led by Société Générale’s subsidiary SG-FORGE, which was founded in 2018 to support the issuance, management and settlement of digital assets, the bank said in the press release.
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