SocGen performs first financial transaction settled with a Central Bank Digital Currency
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SocGen performs first financial transaction settled with a Central Bank Digital Currency 22 May 2020Paris Reporter: Maddie Saghir
Image: EkaterinaPokrovsky/Shutterstock
Societe Generale has performed the first financial transaction settled with a Central Bank Digital Currency.
The covered bond vehicle of Societe Generale issued €40 million of covered bonds as security tokens directly registered on a public blockchain.
The OFH Tokens were fully subscribed by Societe Generale which simultaneously paid the issuer in a digital form of euros issued by Banque de France through a blockchain platform.
Societe Generale explained that this experimentation was performed end-to-end using blockchain infrastructures, in accordance with best market practices.
Additionally, it demonstrates the feasibility of financial securities being digitally settled and delivered in Central Bank Digital Currency (CBDC) for interbank settlements.
According to Societe Generale, the challenge of this experimentation is to identify how innovative technologies could improve the efficiency and fluidity of payment systems and financial infrastructures, allowing a better financial sector to ensure the smooth financing of the economy.
This transaction follows in the footsteps of an initial issue worth €100 million in security tokens by Societe Generale SFH on 18 April 2019, which was settled in the traditional manner in euros.
It seals a new stage in the development of Societe Generale Forge platform, aimed at promoting new blockchain-based market activities.
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Image: EkaterinaPokrovsky/Shutterstock 