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May 21, 2020

Societe Generale Trials Blockchain To Settle Transaction Using Central Bank Digital Currency

On 14 May 2020, Societe Generale issued €40 million of covered bonds as security tokens, which were registered on a public blockchain. These OFH Tokens were fully subscribed by Societe Generale, which simultaneously paid the issuer in a digital form of euros issued by Banque de France.

This successful trial was performed end-to-end using blockchain and demonstrates the feasibility of securities being digitally settled and delivered in Central Bank Digital Currency (CBDC). It paves the way for increased automation and a shortening of payment processes, with simplified market infrastructures and strengthened security.

Societe Generale previously issued €100 million in security tokens on 18 April 2019, which was settled in the traditional manner in euros. The latest successful transaction marks a new stage in the development of Societe Generale Forge platform, aimed at promoting new blockchain-based market activities.

For several years Societe Generale has been involved in numerous initiatives based on blockchain and distributed ledger technologies.


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