Societe Generale Conducts Blockchain-Based Repo Transaction With French Central Bank

Societe Generale mentioned it has executed a blockchain-based repurchase settlement with the Banque de France in what it known as the primary such tokenized transaction with a eurozone central financial institution.

The lender’s digital asset-focused subsidiary SG-Forge has deposited as collateral a variety of bonds issued in 2020 on the general public Ethereum blockchain in alternate for central financial institution digital forex (CBDC) issued by the Banque de France on its DL3S blockchain, it mentioned in a press launch.

With the European Union’s Markets in Crypto Property (MiCA) regulatory framework already in place for stablecoin issuers, SG-Forge has maintained a distinguished position in exploring methods to leverage its euro stablecoin, EUR CoinVertible (EURCV). to make. The token was not concerned within the repo transaction.

The Banque de France, in the meantime, has been energetically testing the feasibility of wholesale CBDCs to enhance points akin to cross-border funds and settlement finality. Broadly talking, blockchain-based repo transactions have confirmed to be probably the most enticing functions of the expertise amongst banks.

“This transaction demonstrates the technical feasibility of interbank refinancing transactions instantly on blockchain. It illustrates the potential of a central financial institution digital forex to enhance the liquidity of digital monetary securities,” SocGen mentioned in a press launch.