Societe Generale has issued EUR100 million of covered bonds as a security token, directly registered on the Ethereum blockchain.
The pilot was the first project developed by SocGen and Societe Generale Forge, an "internal startup" focused on using blockchain technology in capital markets.
The bank says that blockchain has several benefits for bond issuances, including product scalability and reduced time to market, computer code automation structuring, meaning better transparency, faster transferability and settlement.
As reported by Coindesk, Moody's Investor Service notes that SocGen was the sole investor in the deal and says that using blockchain technology is "credit positive" because it cuts the chances of errors.
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