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Société Générale successfully executes collateralized market transactions with Banque de France, using digital securities and CBDCs on blockchain.
Société Générale, France's third-largest bank by total assets after BNP Paribas and Crédit Agricole, has completed a blockchain-based buyback transaction with the Banque de France, France's national bank.
On December 13 Press releaseThe French bank said the deal involved bonds issued on the ethereum (eth) blockchain, which were used as collateral in exchange for the Banque de France central bank digital currency.
According to the announcement, this is the first repo transaction with a central bank that uses digital securities, demonstrating how blockchain technology can facilitate interbank operations such as refinancing. It also emphasizes the potential of CBDCs to improve liquidity in digital financial markets.
“Société Générale deposited as collateral with the Banque de France some bonds issued in 2020 on the public ethereum blockchain in exchange for CBDC issued by the Banque de France on its DL3S blockchain.”
General Society
The transaction follows Société Générale's recent move to blockchain with its issuance of digital green bonds. In December 2023, the bank issued nearly $11 million in senior unsecured notes on the ethereum blockchain, fully subscribed by AXA Investment Managers and Generali Investments. AXA Investment used Société Générale's euro-denominated stablecoin, EUR CoinVertible, for the purchase, with the proceeds allocated to environmental projects.
The latest repo transaction was led by Société Générale subsidiary SG-FORGE, founded in 2018 to support the issuance, management and settlement of digital assets, the bank said in the press release.
