SEB and Credit Agricole launch digital bond platform on blockchain
Zach Anderson Apr 05, 2023 08:04
Skandinaviska Enskilda Banken (SEB) and Credit Agricole have launched a blockchain-based platform called "so|bond," which allows institutional clients to issue, trade and settle bonds digitally. The platform uses a validation protocol called "Proof of Climate awaReness," which minimizes its environmental footprint while incentivizing nodes to improve their environmental impact.
Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank have jointly launched a new digital bond platform called "so|bond." The platform is built on blockchain technology and enables institutional clients to issue, trade and settle bonds digitally. The platform is set to provide a more efficient and secure process than traditional methods, enhancing the clients' experience.
The so|bond platform is designed to use a validation protocol called "Proof of Climate awaReness" to minimize its environmental footprint while incentivizing participating nodes to improve their environmental impact. Each node will be remunerated according to a formula linked to its climate impact, with the lower the environmental footprint, the larger the reward. This protocol enables the platform to consume energy comparable to non-blockchain systems, making it an eco-friendly solution.
The so|bond platform is the first use case for the "Proof of Climate awaReness" protocol, which was developed by the French-based IT provider Finaxys. The protocol's innovative approach to the blockchain infrastructure and securities market allows it to play a pivotal role in green and sustainable finance, aligning with Credit Agricole's Societal Project.
Romaric Rolleti, head of innovation and digital transformation at Credit Agricole, stated that the bond blockchain platform is part of a larger plan for the bank's digital transformation. The platform's innovative approach to the blockchain infrastructure and securities market, coupled with the strong commitment to green and sustainable finance, is at the center of Credit Agricole's Societal Project. This initiative joins many other efforts to explore the use of blockchain, smart contracts, and the Internet of Things for a global environmental cause.
The so|bond platform launch comes amid growing interest in green and sustainable finance. In October 2022, the Bank for International Settlements, the Hong Kong Monetary Authority and the United Nations Climate Change Global Innovation Hub presented the results of their Genesis 2.0 initiative — two prototypes of tokenized green bonds. With so|bond, SEB and Credit Agricole have demonstrated their leadership in addressing environmental concerns while leveraging blockchain technology for a more efficient and sustainable bond market.
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