European Traditional Finance Banks Join Forces for Blockchain-Based Digital Bonds Trading Platform

Major European banks SEB and Crédit Agricole have launched so|bond, a new blockchain-based platform for issuing digital bonds in the traditional financial sector.

The new platform, dubbed a “stable and open” blockchain, aims to improve efficiency and enable real-time data synchronization across participants, a joint Announcement Told both the banks on Monday.

Instead of relying on traditional consensus mechanisms such as proof-of-stake (POS) or proof of work (pow), the new platform uses a verification method that Banks calls “proof of climate awareness”.

According to Banks, the method will incentivize participants to reduce their so-called climate footprint, but it is unknown how secure or decentralized it is.

The so|bond platform enables issuers to raise capital and manage securities through smart contracts, which automatically execute, control or document events and actions in accordance with the terms of the contract.

The intent is that the open and transparent nature of the system will foster trust among market participants and allow further innovations to take place.

Commenting on the launch, Anna Sjulander, Head of SSA DCM (Sovereign, Supranational and Agencies Debt Capital Markets) at SEB, said that the new platform will allow banks to study how digital assets can be used for traditional finance firms. What would it mean?

“The launch of the digital bond platform is an important step for the SEB, and for issuers and investors joining the platform, and will allow us to gain insight into the innovative space of digital assets for the financial services industry,” he Said, adding that the goal is to expand the use cases in the future:

“We see this as a great opportunity to explore what to expect in the future in terms of transparency, faster processing and operational simplification, and look to bonds first before expanding the use of the platform to other asset classes.” Will use it as a step.

The platform and blockchain technology were developed in collaboration with IT provider Finaxys, while the environmental footprint is measured according to a methodology developed by APL Data Center and implemented by SGS, a world-leading certification firm.

So|bond is the first use case of this new technology operating under the Proof of Climate Awareness Protocol in the global capital markets.