Societe Generale SFH, the covered bond vehicle of Societe Generale, issued a €100 million covered bond as a security token on the public blockchain, Ethereum. OFH Tokens have been rated Aaa / AAA by Moody’s and Fitch and have been fully subscribed by Societe Generale.
This operation is the first pilot project developed by Societe Generale and Societe Generale FORGE, one of the 60 internal startups launched via the Internal Startup Call, the Group’s intrapreneurial program. This startup experiments with disruptive business solutions using blockchain technology to develop new digital capital market activities.
This live transaction explores a more efficient process for bond issuances. Many areas of added value are predicted, among which, product scalability and reduced time to market, computer code automation structuring, thus better transparency, faster transferability and settlement. It proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries.
In the field of blockchain and distributed ledger technologies, SocGen has been involved for several years in numerous initiatives, such as we.trade, the first blockchain-based trade finance platform used by the bank’s corporate clients in France, or the launch of komgo SA to digitalize the trade and commodities finance sector through a blockchain based open platform.