First Covered Bond Issued as a Security Token, 100m EUR on a Public Blockchain

Switzerland

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On 18 April 2019 Societe Generale SFH, issued EUR 100m of covered bonds as a security token, directly registered on the Ethereum blockchain.

OFH Tokens have been rated Aaa / AAA by Moody’s and Fitch and have been fully subscribed by Societe Generale.

This operation is the first pilot project developed by Societe Generale and Societe Generale FORGE, one of the 60 internal startups launched via the Internal Startup Call, the Group’s intrapreneurial programme. This startup experiments disruptive business solutions using blockchain technology to develop new digital capital market activities.

This live transaction explores a more efficient process for bond issuances. Many areas of added value are predicted, among which, product scalability and reduced time to market, computer code automation structuring, thus better transparency, faster transferability and settlement. It proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries.

Featured image credit: Societe Generale

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