Skandinaviska Enskilda Banken (SEB) and Credit score Agricole Financial institution have collectively launched a brand new digital bond platform known as “so|bond.” The platform is constructed on blockchain expertise and permits institutional purchasers to challenge, commerce and settle bonds digitally. The platform is about to offer a extra environment friendly and safe course of than conventional strategies, enhancing the purchasers’ expertise.
The so|bond platform is designed to make use of a validation protocol known as “Proof of Local weather awaReness” to reduce its environmental footprint whereas incentivizing taking part nodes to enhance their environmental impression. Every node might be remunerated in response to a method linked to its local weather impression, with the decrease the environmental footprint, the bigger the reward. This protocol permits the platform to devour power akin to non-blockchain methods, making it an eco-friendly resolution.
The so|bond platform is the primary use case for the “Proof of Local weather awaReness” protocol, which was developed by the French-based IT supplier Finaxys. The protocol’s progressive method to the blockchain infrastructure and securities market permits it to play a pivotal function in inexperienced and sustainable finance, aligning with Credit score Agricole’s Societal Undertaking.
Romaric Rolleti, head of innovation and digital transformation at Credit score Agricole, acknowledged that the bond blockchain platform is a component of a bigger plan for the financial institution’s digital transformation. The platform’s progressive method to the blockchain infrastructure and securities market, coupled with the robust dedication to inexperienced and sustainable finance, is on the heart of Credit score Agricole’s Societal Undertaking. This initiative joins many different efforts to discover using blockchain, good contracts, and the Web of Issues for a worldwide environmental trigger.
The so|bond platform launch comes amid rising curiosity in inexperienced and sustainable finance. In October 2022, the Financial institution for Worldwide Settlements, the Hong Kong Financial Authority and the United Nations Local weather Change International Innovation Hub introduced the outcomes of their Genesis 2.0 initiative — two prototypes of tokenized inexperienced bonds. With so|bond, SEB and Credit score Agricole have demonstrated their management in addressing environmental issues whereas leveraging blockchain expertise for a extra environment friendly and sustainable bond market.