Société Générale, France’s third-largest bank by assets, has successfully completed a blockchain-based repurchase agreement (repo) transaction with the Banque de France.
This marks the first time a central bank has utilized digital securities for such a transaction.
In a statement released on December 13, Société Générale revealed that the deal involved using bonds issued on the Ethereum blockchain as collateral to secure central bank digital currency (CBDC) from the Banque de France. The CBDC was issued on Banque de France’s proprietary DL3S blockchain.
This milestone transaction demonstrates the potential of blockchain technology to streamline interbank operations like refinancing, while also highlighting the role of CBDCs in enhancing liquidity in digital financial markets. Société Générale stated that the bonds used in the transaction were originally issued in 2020 on Ethereum
The deal aligns with Société Générale’s broader blockchain initiatives. Just a year ago, the bank issued $11 million worth of digital green bonds on Ethereum, fully subscribed by institutional investors like AXA Investment Managers and Generali Investments. AXA Investment Managers utilized Société Générale’s euro-pegged stablecoin, EUR CoinVertible, for the transaction, with funds allocated to environmental projects.
The repo transaction was facilitated by SG-FORGE, Société Générale’s subsidiary specializing in digital asset operations since 2018. The bank emphasized that this achievement explains the transformative potential of blockchain and digital assets in reshaping traditional financial systems.
Further advancing its crypto ecosystem, Société Générale has also partnered with Bitpanda to integrate cryptocurrencies and stablecoins into its product offerings. The collaboration will see Bitpanda working with Société Générale-FORGE, the bank’s crypto division, to promote the adoption of its euro-backed stablecoin, EUR CoinVertible (EURCV). Issued on the Ethereum blockchain, EURCV will now be accessible to European investors via Bitpanda’s crypto exchange, further expanding its reach and use cases. Jean-Mark Stenger, CEO of Societe Generale-FORGE, also emphasized that this partnership is a significant move toward embedding stablecoins into the broader financial landscape.
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