French bank Societe Generale issues over €100m in bonds on ETH blockchain

23 Apr, 2019
by David Robb
Blockchain
French bank Societe Generale issues over €100m in bonds on ETH blockchain

Leading French bank Societe Generale has issued its first bonds as a security on a public blockchain. The bonds were worth around €100m, and were tokenized on the Ethereum network. 

The issuance of bonds is one important emerging use case for digital tokenization, with real estate being another potentially important growth areas that could see significant disruption from blockchain technology in the upcoming years. 

According to a press release from Societe Generale, the use of tokenization on the Ethereum blockchain offers "a more efficient process for bond issuances. Many areas of added value are predicted, among which, product scalability and reduced time to market, computer code automation structuring, thus 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 French bank has also recently been involved with we.trade, the first blockchain-based trade finance platform, primarily aimed at corporate traders. In general, the underlying blockchain technology is something that leading financial institutions trust more than the cryptocurrency use case. After years of scepticism, JP Morgan recently launched its own blockchain-based stablecoin JPM Coin, although its claim to be a genuine crypto has been met with much criticism and ridicule from those in the community.

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