Société Générale completes repo transaction on Ethereum with the Banque de France

Société Générale successfully executes collateralized market transaction with Banque de France, using digital securities and CBDC on blockchain.

Société Générale, Francethe third bank in the country in terms of balance sheet total after BNP Paribas and Crédit Agricole, has finalized a blockchainRepo operation based on the Banque de France, the national bank of France.

In a December 13 press releasethe French bank said the transaction concerned bonds issued on Ethereum (ETH) blockchain, which were used as collateral in exchange for central bank digital currency from the Banque de France.

According to the announcement, this is the first central bank repo transaction using digital securities, demonstrating how blockchain technology can facilitate interbank transactions such as refinancing. It also highlights the potential of CBDCs to improve liquidity in digital financial markets.

“Societe Generale has deposited as security with the Banque de France bonds issued in 2020 on the public Ethereum blockchain in exchange for CBDCs issued by the Banque de France on its DL3S blockchain.”

Société Générale

This transaction follows Société Générale’s recent move to blockchain with its issuance of digital green bonds. In December 2023, the bank issued nearly $11 million in senior unsecured bonds on the Ethereum blockchain, fully subscribed by AXA Investment Managers and Generali Investments. AXA Investment used Société Générale’s euro-denominated stablecoin, EUR CoinVertible, for the purchase, with the proceeds allocated to environmental projects.

The latest repo operation was led by Société Générale subsidiary SG-FORGE, founded in 2018 to support the issuance, management and settlement of digital assets, the bank said in the press release.