French Lender Societe Generale Issues $112 Million Bond on Ethereum

French financial services giant Societe Generale has issued about $112 million worth of bonds in the form of a security token on the public ethereum blockchain.

Announced today, the investment bank used the OFH token to represent 100 million euros of covered bonds, a type of security that is backed by specific assets but remains on the issuer's balance sheet.

The pilot was designed by Societe Generale's blockchain subsidiary Societe Generale FORGE, "One of the 60 internal startups launched via the Internal Startup Call, the Group's intrapreneurial programme," the company said.

"Many areas of added value are predicted, among which, product scalability and reduced time to market, computer code automation structuring, thus better transparency, faster transferability and settlement. It proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries."

Societe Generale has been involved in a number of enterprise blockchain projects.

Earlier this month, Societe Generale-owned private bank and wealth manager Kleinwort Hambros announced it had launched an exchange-traded note with a focus on investing in blockchain companies.

More broadly, a growing number of enterprises have been experimenting with public blockchains, including big players, but issuing actual digital securities by a global investment bank is rare.

In September, the Austrian government announced a pilot to use the ethereum blockchain to notarize the auction of a government bond worth $1.3 billion.

Two months later, Spanish bank BBVA recorded a $150 million syndicated loan on ethereum, time-stamping data on a loan issued for Red Electrica, Spain's national electrical grid operator.

Among startups, back in 2017, Nivaura initiated a bond denominated in ether for the London-based luxury retail startup LuxDeco.