The French credit institution Société Générale SFH has just issued a 100 million euros bond as a security token on Ethereum's blockchain, the company announced yesterday.
Société Générale SFH, a subsidiary of one of Europe's largest financial services groups, Société Générale Group, has launched its first pilot project developed in partnership with Société Générale FORGE, an internal startup.
According to Moody’s rating agency, Société Générale was the “only investor”, which means that this new financial instrument was not offered to third parties.
The bond has a five-year maturity with a 12-month extension period, the rating agency says. If the company goes bankrupt, the holders will get the same fractional amounts at the same time as regular bondholders.
The professional-services firm PwC participated in the project as a technology consultant, while legal support was provided by French law firm Gide Loyrette Nouel.
Société Générale believes this new instrument will help reduce costs, increase transparency and reduce the likelihood of errors.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.