Société Générale, a large European bank, has announced that it will issue 100 million euros of asset-backed bonds on the Ethereum in the form of security tokens. The token is called OFH and has been rated AA/AAA by international rating agencies Moody’s and Fitch.
According to the information released by Societe Generale, this time it was issued through its subsidiary, Societe Generale SFH and was established by FORGE, one of the 60 startups within the group. As for the start-up company experiment, the purpose is to develop new digital capital market activities with blockchain technology.
Societe General believes that the use of blockchain technology is to find more efficient ways to issue bonds, including product expansion, time reduction to the market, and more transparency, faster trading, and settlement, etc. Level market bond trading sets new standards and reduces the cost of issuing and the number of intermediaries.
Earlier, 13 European banks, including Societe Generale, launched the blockchain trading platform we.trade. All French corporate clients can enter the platform to make transactions. When the buyer and the seller agree to the transaction, all transactions will be recorded in the blockchain, and after the terms are fully met, the buyer’s bank will automatically execute the relevant payment.