Societe Generale SFH, France’s specialized credit organization, recently released a bond worth 100 million euros ($112 million) to serve as a security token on Ethereum’s (ETH) blockchain.
Societe Generale Group
Societe Generale SFH is a subsidiary of Societe Generale Group, one of the European continent’s biggest financial service institutions. The pilot project on the ETH system will be conducted alongside Societe Generale FORGE, an internal startup established via the Internal Startup Call, an intrapreneurial project of the Societe Generale Group.
The objective of the bond was to study a more streamlined method of bond issuance that could potentially lead to better transparency and quicker settlement and transferability. The SFH stated in its announcement that the project advances a new measurement for issuances and alternative market bond exchange. It also lowers costs and the number of intermediaries.
Societe General has established itself as a formidable supporter of blockchain technology. Late 2018 saw the company become one of the established financial groups to set up a joint venture called komgo SA. The venture was created alongside Consensys, an ethereum-specific blockchain framework, and solutions company.
The conglomerate was created to monitor a new blockchain platform that will be used for financing commodities exchange. It also plans to digitize commodities finance and trade processes via a blockchain-centered open platform.
Last month, a private bank owned by Societe Generale, the Kleinwort Hambros, introduced an exchange-traded note comprised of blockchain-connected companies. The stocks allegedly have twenty companies, which are all expected to financially benefit from the blockchain and the adoption of distributed ledger tech.