Bond on the Ethereum Blockchain
French financial conglomerate Societe Generale Group issues bonds worth $ 112 million in the form of security tokens on the public Ethereum blockchain.
The token is a commitment to fund specific assets and remains on the issuer’s balance sheet. Ratings agency Moody’s Investors Service reported that the conglomerate issued virtual assets for itself as there were no outside investors.
Societe Generale, Issues $112 Million Bond on Ethereum
Bonds with a five-year maturity provide for an extension of twelve months. Principle «equal treatment» guarantees that in the event of bankruptcy of the company, their holders will receive fractional amounts on an equal basis with other creditors.
Societe Generale is confident that the new standard will help reduce costs, increase transparency and reduce the likelihood of emission errors that arise due to the complexity and large number of participants..
Societe Generale subsidiary SFH was responsible for tokenization. PwC consulting firm advised the project on the technological side, and discussed legal aspects with lawyers from Gide Laurette Nouel.
Another financial giant JPMorgan reported empowering your blockchain project to process interbank payments.
text: Ivan Malichenko, photo: lemde, plusworld