Credit Agricole CIB, SEB Launch Public Sustainable Blockchain Bond Network – Ledger Insights
Today, Crédit Agricole CIB and SEB unveiled a new public blockchain bond issuance platform, so|bond. It aims to improve the efficiency of the bond issuance process with a sustainable twist. The network is not aimed at green bonds per se, but aims to be environmentally friendly in how it works. It positions itself as an open platform that is only semi-permission compared to most bank bond platforms that are fully permissioned.
“The platform’s innovative approach, both to the blockchain infrastructure and to the securities market, is combined with the strong commitment to green and sustainable finance that is at the center of our social project,” said Romaric Rollet, head of innovation and digital transformation at Crédit Agricole CIB.
So|bond offers the benefits we have come to expect from blockchain bond issuance platforms, including efficiency in issuance, administration and automation using smart contracts.
It’s a little different under the hood. Some specialized public blockchains use the so-called Proof of Authority, where only well-known companies manage nodes that write to the blockchain, but anyone can access the blockchain. So|bond adopts a similar model it calls the Proof of Climate awaReness protocol, which has been adapted to incentivize node operators to minimize the carbon footprint of their node with a token, the Climate awaReness Coin.
“We see this as a great opportunity to learn what the future holds in terms of transparency, faster processing and operational simplifications, and will use a bond as the first stepping stone before expanding the use of the platform to other asset classes,” said Anna Sjulander of SEB .
IT provider Finaxys was a blockchain partner with SGS who provided the sustainability audits based on a methodology developed with APL Data Center.
This is the latest blockchain platform for corporate bond issuance, with many banks and securities providers offering solutions. In recent months, Goldman Sachs and HSBC have launched platforms for issuing bonds and digital assets, along with others such as Societe Generale, Santander and ABN Amro. Meanwhile, UBS launched the largest digital bond via the SIX Digital Exchange.
In terms of public versus private blockchains, Siemens recently launched a €60 million public blockchain bond. And the solutions offered by Societe Generale, Santander and ABN Amro support public blockchain.
