<img src="https://crypto.news/app/uploads/2023/11/crypto-news-ethereum-logo-hologram-modern-city-background-low-pole-style-1.webp” />
French multinational financial conglomerate Societe Generale has issued its first digital green bond on a blockchain network.
According to Reuters report, the Paris-based banking group has nearly $11 million in senior unsecured bonds maturing in three years on the ethereum (eth) blockchain. The bank added that AXA Investment Managers and Generali Investments “fully subscribed for the related security tokens through private placement.”
AXA Investment notably acquired and spent €5 million on Societe Generale's euro-denominated ERC-20 stablecoin called EUR CoinVertible (EURCV). The bank plans to spend the proceeds on projects aimed at achieving environmental benefits, including renewable energy and low-carbon transportation.
Societe Generale announced its EURCV stablecoin in April 2023, hoping to bridge the gap between traditional capital markets and the digital asset ecosystem. However, the announcement was met with skepticism from Stasis, a company behind the euro-pegged EURS stablecoin, which highlighted the potential risks and “single point of failure” issue associated with stablecoins issued by commercial banks. .
Stasis was not the only company to question Société Générale's crypto venture, as other analysts also noted that EURCV's smart contract functionality relies on a centralized registrar (likely one controlled by the bank).