Two European banks have launched a a new digital bond platform which is designed to minimize the environmental footprint of the platform
Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank have launched a new digital bond platform built on blockchain technology called “so|bond.”
This joint project aims to provide institutional clients with a more efficient and secure process for issuing, trading, and settling bonds digitally compared to traditional methods.
The platform is built on a blockchain network that uses a validation protocol called “Proof of Climate awaReness,” which minimizes the environmental footprint of the platform.
The protocol incentivizes participating nodes to improve the environmental footprint of their infrastructures, with each node remunerated according to a formula linked to its climate impact.
This innovative approach by European banks to the blockchain infrastructure and the securities market is coupled with Credit Agricole’s strong commitment to green and sustainable finance.
Romaric Rolleti, Head of Innovation and Digital Transformation at Credit Agricole, explained that the bond blockchain platform is part of the bank’s larger plan for digital transformation, with a strong focus on sustainable finance at the center of its Societal Project.
The so|bond platform is the first use case for the Proof of Climate awaReness protocol developed by French-based IT provider Finaxys. The platform aims to provide a more sustainable and environmentally friendly option for institutional clients to issue and trade bonds.
The launch of this platform joins other efforts to explore the use of blockchain, smart contracts, and the Internet of Things for global environmental causes.
In October 2022, the Bank for International Settlements, the Hong Kong Monetary Authority, and the United Nations Climate Change Global Innovation Hub presented the results of their Genesis 2.0 initiative, which included two prototypes of tokenized green bonds.
With the launch of so|bond, SEB and Credit Agricole are providing a more sustainable and efficient option for institutional clients to issue, trade, and settle bonds digitally.
The use of blockchain technology and the Proof of Climate awaReness protocol not only provides a secure and efficient process but also contributes to the goal of sustainable finance.
As more financial institutions join the push for sustainable and environmentally friendly practices, the development and adoption of similar platforms are likely to increase.
Sustainable Blockchain
In conclusion, the launch of the so|bond platform by SEB and Credit Agricole Bank provides institutional clients with a more efficient and sustainable option for issuing, trading, and settling bonds digitally.
The use of blockchain technology and the Proof of Climate awaReness protocol minimizes the environmental footprint of the platform and incentivizes participating nodes to improve their climate impact.