The French Central Bank and Societe Generale Complete a Blockchain-Based Repo Transaction
Being the first to carry out an on-chain repo transaction with a European central bank, SocGen is claiming bragging rights.
The SG-Forge subsidiary of SocGen conducted a repo deal with Banque de France.
In return for CBDC issued by the central bank on its DL3S blockchain, SG-Forge placed certain 2020 bonds on the Ethereum blockchain as collateral.
Societe Generale said it signed a blockchain-based repurchase agreement with the Banque de France, calling it the first tokenized transaction of its sort with a euro zone central bank.
According to a press statement, the lender's subsidiary SG-Forge, which focuses on digital assets, exchanged central bank digital currency (CBDC) issued by the Banque de France on its DL3S blockchain for bonds issued in 2020 on the public Ethereum blockchain.
Since stablecoin issuers are already subject to the European Union's Markets in Crypto Assets (MiCA) regulatory framework, SG-Forge has kept a close eye on potential deployment strategies for EUR CoinVertible (EURCV), their euro stablecoin. The repo transaction did not include the token.
The technological viability of interbank refinance operations conducted directly on blockchain is demonstrated by this transaction. According to a press release from SocGen, it demonstrates how a central bank digital currency may increase the liquidity of digital financial products.
Being the first to carry out an on-chain repo transaction with a European central bank, SocGen is claiming bragging rights.
The SG-Forge subsidiary of SocGen conducted a repo deal with Banque de France.
In return for CBDC issued by the central bank on its DL3S blockchain, SG-Forge placed certain 2020 bonds on the Ethereum blockchain as collateral.
Societe Generale said it signed a blockchain-based repurchase agreement with the Banque de France, calling it the first tokenized transaction of its sort with a euro zone central bank.
According to a press statement, the lender's subsidiary SG-Forge, which focuses on digital assets, exchanged central bank digital currency (CBDC) issued by the Banque de France on its DL3S blockchain for bonds issued in 2020 on the public Ethereum blockchain.
Since stablecoin issuers are already subject to the European Union's Markets in Crypto Assets (MiCA) regulatory framework, SG-Forge has kept a close eye on potential deployment strategies for EUR CoinVertible (EURCV), their euro stablecoin. The repo transaction did not include the token.
The technological viability of interbank refinance operations conducted directly on blockchain is demonstrated by this transaction. According to a press release from SocGen, it demonstrates how a central bank digital currency may increase the liquidity of digital financial products.