Societe Generale issues €100m of bonds for housing financing
Societe Generale SFH, a subsidiary of the French giant dedicated to the financing of housing, issued €100 million of covered bonds on the blockchain on April 18, 2019.
As reported by Journal Du Net, for these bonds, their service is guaranteed by mortgages or loans to the sector public. The securities were designed as security tokens, financial securities tokenised and recorded on a blockchain. These have been dubbed “OFH Tokens”.
These tokens were issued on Ethereum. The bank, however, did not release the Ethereum address, which makes it impossible to verify this operation.
Societe Generale says that issuing these security tokens has several advantages: product modularity and shortened time-to-market, automated title events, increased transparency, and faster securities transfer and settlement.
The bank says it also makes it possible to offer a new standard for issuing and trading in the secondary market and to reduce costs and the number of intermediaries.
Societe Generale is not the first in Europe, with the Spanish bank BBVA issuing €35 million of green bonds last February on a private blockchain.
