Societe Generale, France’s third-biggest listed financial institution, mentioned on Monday it issued its first so-called digital inexperienced bond on a public blockchain, because the lender seeks to construct experience in crypto companies.

The inaugural transaction quantities to 10 million euros ($10.87 million) price of senior most well-liked unsecured bonds with a maturity of three years, the financial institution mentioned.

AXA Funding Managers, the funding arm of France’s largest insurance coverage firm AXA and Generali Investments, its equal for Italian insurer Generali absolutely subscribed the associated safety tokens, by means of personal placement, SocGen mentioned.

Blockchain is a digital ledger that data possession of tokens. It has not seen widespread adoption however proponents say it has the potential to make buying and selling extra environment friendly and clear.

Thus far, blockchain’s principal use case has been cryptocurrencies. However banks are more and more investing in growing tokenised securities, also called safety tokens or digital belongings. The concept is to create blockchain-based tokens which symbolize possession of conventional monetary belongings reminiscent of bonds.

Proceeds from inexperienced bonds are aimed to be spent on initiatives or actions with environmental advantages, reminiscent of renewable power and low carbon transportation.

AXA IM made the funding within the digital inexperienced bond by buying after which spending 5 million euros price of SocGen’s euro-denominated stablecoin, EUR CoinVertible (EURCV).

SocGen’s bond issuance, made on the Ethereum public blockchain, follows the launch final week by the European Funding Financial institution (EIB) of its second euro-denominated digital bond on a personal blockchain, in partnership with Goldman Sachs Financial institution Europe, Santander and SocGen.

SocGen’s digital inexperienced bond issuance was made through its crypto unit, Forge.

($1 = 0.9202 euros)

(Reporting by Mathieu Rosemain; modifying by Bernadette Baum)