European banks join forces to launch a revolutionary blockchain platform – Cryptopolitan
Europe’s banking industry has taken a major step forward with the launch of a ground-breaking new blockchain platform for digital bonds. The platform, called “so|bond”, is a joint project of Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank from Sweden and France respectively.
It enables institutional clients to issue, trade and settle bonds digitally, providing a more efficient and secure process than traditional methods.
The platform also uses a validation protocol, “Proof of Climate awaReness”, which aims to minimize the environmental footprint of blockchain networks.
This protocol enables an energy consumption comparable to non-blockchain systems and incentivizes participating nodes to improve the environmental footprint of their infrastructure.
Each node will be rewarded according to a formula related to its climate impact: the lower the environmental footprint, the greater the reward. So|bond would be the first use case for the protocol developed by French-based IT provider Finaxys.
The launch of the so|bond platform is an important achievement for the European banking industry, which has been exploring the use of blockchain, smart contracts and the Internet of Things for global environmental causes.
The platform is sustainable and open, enabling issuers to raise capital and manage securities through smart contracts, which automatically execute, control or document events and actions according to the terms of the contract.
A new era of sustainable finance for Europe
Blockchain technology has the potential to modernize and digitize the banking and finance sectors through decentralized and efficient infrastructure.
The So|bond platform will enable issuers to raise capital and manage securities through smart contracts, programs that automatically execute, control or document events and actions according to the terms of the contract.
The platform’s open, transparent and secure model also fosters trust between market participants and allows for further innovations such as using a future digital central bank currency.
This new blockchain platform is a significant development in sustainable finance, an area where Europe has been a leader. The use of blockchain technology to promote sustainable and environmentally friendly practices is an innovative approach that could have far-reaching implications for the future of finance.
Evidence of climate awareness
One of the main barriers to the widespread use of blockchain technology is that it is often considered a high-energy solution.
Although “Proof of Stake” protocols use significantly less energy than those using “Proof of Work”, there is still room for further improvements.
The So|bond platform is built on a new type of blockchain validation logic, the Proof of Climate awaReness protocol. It enables an energy consumption comparable to non-blockchain systems and incentivizes participating nodes to continuously improve the environmental footprint of their infrastructure.
The platform and blockchain technology have been developed in collaboration with the IT supplier Finaxys. The environmental footprint is measured according to a methodology developed by APL Data Center and used by SGS, a world-leading certification expert.
So|bond is the first use of this new blockchain technology operating under the Proof of Climate Awareness protocol in global capital markets.
Europe’s banking industry has long been a driving force behind sustainable finance, and the launch of the so|bond platform marks a significant milestone in this area.
