Societe Generale Leads in Green Bond Tokenization on Ethereum

Societe Generale (SocGen), a major French banking institution, has successfully completed its first tokenized green bond issuance on the Ethereum network, signaling a growing interest in blockchain technology among traditional financial institutions. SocGen issued €10 million ($10.8 million) in digital green bond tokens through its digital asset arm, SG-FORGE. These bonds were purchased by AXA Investment Managers and Generali Investments.

The bank plans to use the proceeds from these bonds to finance or refinance sustainable activities. The tokenization of these bonds on the blockchain ensures greater transparency, traceability, and quicker transactions and settlements. This initiative also represents a move towards using blockchain as a data repository and certification tool for issuers and investors, particularly in the realm of ESG (Environmental, Social, and Governance) and impact data on a global scale.

AXA IM, part of the French insurance giant AXA, participated in this blockchain experiment by purchasing €5 million worth of bonds using the euro-pegged stablecoin EURCV, managed by SG-FORGE. This initiative is part of the broader trend of tokenizing real-world assets (RWAs), with the market value of tokenized assets expected to reach significant figures as more assets migrate to blockchain technology​​​​​​​​​​​​​​​​​​.

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