• Societe Generale completes the first repo transaction in digital securities with a Eurosystem central bank.
• They’ve used its 2020 bonds as collateral on the Ethereum blockchain to exchange for CBDC.

Societe Generale has accomplished its first collateralized market transaction executed in collaboration with the Bank of France. It has employed the technological capabilities of Societe Generale’s blockchain subsidiary, SG-Forge.

Moreover, this transaction is the first-ever repo operation in digital securities involving a central bank of the Eurosystem. This demonstrates the potential of blockchain for interbank refinancing and digital securities transactions.

A repo operation, known as a Sale and Repurchase Agreement, is an ordinary financial transaction where securities are sold with the agreement to repurchase later and used for short-term borrowing.

Notably, Societe Generale has used its 2020 bonds as collateral through the Ethereum blockchain in exchange for Central Bank Digital Currency (CBDC) issued by the Bank of France on its proprietary DL3S blockchain.

Societe Generale stated in the press release:

“This transaction demonstrates the technical feasibility of interbank refinancing operations directly on blockchain. It illustrates the potential of a Central Bank Digital Currency to improve the liquidity of digital financial securities.”

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First Digital Securities Repo with Eurosystem Bank and Its Blockchain Implications

This is an essential step in bringing blockchain technology and digital securities together into traditional financial operations. Also, with the added innovation of incorporating a CBDC issued by a central bank. It’s crucial to point out that SG-Forge’s euro stablecoin, EUR CoinVertible (EURCV), was excluded from the transaction.

Through blockchain technology deployment, this operation shows the contribution toward the creation of secure, efficient, and transparent financial markets. In addition, highlights the prospects of Central Bank Digital Currency (CBDC) to enhance the liquidity in digital financial securities.

Likewise, Societe Generale’s SG-Forge has been at the leading edge of leveraging blockchain in financial markets. Also, this transaction underlines the bank’s role in initiating innovative solutions that merge advanced technology with traditional finance.

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