SEB and Crédit Agricole CIB Launch Blockchain-based Digital Bonds Platform

Earlier, Crédit Agricole CIB and SEB jointly announced the launch of a new public blockchain-based platform, so|bond. According to the announcement, the platform will be focused on improving the efficiency of issuing digital bonds, albeit with a little twist of sustainability. That is, while the network is not exactly fixated on green bonds, it still aims to be eco-friendly in its operations.

To this end, the platform will look to reward participants that improve their environmental footprint. It will achieve that using a validation protocol it calls “Proof of Climate awaReness,” which is adapted in a way that it rewards node operators with the Climate awaReness Coin token for minimizing the carbon footprint of their node.

So|bond was launched in collaboration with IT services firm Finaxys. The platform will measure environmental footprint as proposed by APL Data Center methodology which will be applied by SGS. Interestingly, so|bond is the first blockchain to use the Proof of Climate awaReness protocol.

Romaric Rollet, Head of Innovation and Digital Transformation at Crédit Agricole CIB has expressed his excitement at the newly-launched platform. He says it aligns with the goals of the firm’s Societal Project, which is to ensure green and sustainable finance.

SEB and Crédit Agricole CIB Join Long List of Banks to Explore Blockchain Bond

Meanwhile, it might be worth noting that this partnership is the latest in a long list of similar ones in recent times. This is as blockchain corporate bond issuance is gradually becoming a trend among top financial institutions.

Recently, Goldman Sachs and HSBC launched bond issuance and digital asset platforms. And by that, they joined the likes of Societe Generale, Santander, and ABN Amro who’ve gone ahead in the space. Similarly, Swiss bank UBS also launched what has been dubbed the largest digital bond.

Therefore, SEB is attaching great importance to the launch. According to SEB head of SSA DCM, Anna Sjulander, the bank is prepared to take the opportunity to learn about fast, transparent, and simplified transactions. She also said:

“It will allow us gain insights into what the innovative space of digital assets means for the financial services industry.”

The two banks also assure of plans to allow the platform to accommodate central bank digital currencies in the future. According to them, this will ultimately open them up to deal beyond bonds and expand to other asset classes.