Societe Generale Issues Tokenized Green Bonds: AXA and Generali Among First Buyers

In an official announcement released Monday, November 30, Societe Generale has said that it has issued its first digital green bonds on Ethereum, through its digital-asset arm SG-FORGE.This initial issuance is estimated to be worth around €10 million ($10.8 million). The bank has also specifically cited financial firms AXA Investment Managers and Generali Investments as early adopters. SocGen has also stated that the digital green bond had at least two two important innovations which the bank is keen to further develop:

1. The functionality to measure the carbon emissions of issuers and investors' securities by publishing the carbon footprint reports on security tokens

2. The functionality for investors to settle securities on-chain, complementing traditional settlement solutions. At the same time, SocGen has said that it plans to experiment with Central Bank Digital Currencies (CBDCs).

SocGen claims to the move be consistent with its "commitment to drawing on its financial structuring expertise and on SG-FORGE’s technologic[al] capabilities to contribute to building an innovative sustainable bond market."

Societe Generale is one France's biggest banks. Established over 150 years ago, it is France's third largest bank by total assets under management. Last July, SocGen became the first French bank to procure a license to trade and custody cryptocurrency and other digital assets. This recent move is consistent with the bank's forays into the sector and reflects the growing interest of traditional finance (or TradFi) in blockchain technology. 

At the same time, these recent inroads on SocGen's part are aligned with France's moves to become Europe's main crypto hub. Earlier this year, the country created a training program specifically for crypto and finance influencers, with the aim of not just informing the public but also instilling better compliance on advertising laws and guarding investors against risky financial products.Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.