French and Swedish banking giants unite for a joint digital bond project.
Swedish Skandinaviska Enskilda Banken (SEB) and French Credit Agricole Bank have come together to create a groundbreaking blockchain-based digital bond platform called "so|bond."
The new platform is set to allow institutional clients to digitally issue, trade, and settle bonds, making it a more efficient and secure solution for launching bonds compared to traditional methods.
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The blockchain-based platform, launched on April 3rd, utilizes a unique validation protocol known as "Proof of Climate awaReness" to minimize its ecological footprint. The protocol offers energy consumption levels similar to those of non-blockchain systems while incentivizing nodes to lower the environmental impact of their infrastructures.
When talking about the project, SEB Head of SSA DCM (sovereigns, supranational, and agencies debt capital markets), Anna Sjulander, noted:
We see this as a great opportunity to learn what the future entails in terms of transparency, faster processing, and operational simplifications, and will use a bond as the first stepping stone before expanding the use of the platform to other asset classes.
With the "so|bond" platform, nodes will be rewarded based on their climate impact, with larger rewards granted for smaller environmental footprints. The protocol, developed by French IT company Finaxys, will be the first to use "so|bond."
Head of Innovation and Digital Transformation at Crédit Agricole CIB, Romaric Rollet, shared his thoughts about the project by noting:
Crédit Agricole CIB is proud to contribute to the emerging market of digital assets. The platform’s innovative approach, both to the blockchain infrastructure and to the securities market, is coupled with the strong commitment to green and sustainable finance that is at the centre of our Societal Project.
The so|bond project is part of a wider exploration into the potential applications of blockchain, smart contracts, and the Internet of Things for global environmental efforts.
In February, German technology giant Siemens issued the first digital bond on a public blockchain.
