EU banks launch a blockchain-based bond trading platform

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Key takeaways:

  • The Swedish Skandinaviska Enskilda Banken (SEB) and the French Credit Agricole Bank have jointly  developed the innovative blockchain-based digital bond platform 
  • The new platform will be a “sustainable and open” blockchain that aims to increase productivity and make user real-time data synchronisation possible

So|bond, a “sustainable and open” blockchain-based infrastructure for digital bonds, is being introduced by SEB and Crédit Agricole CIB. Capital market issuers will be able to issue digital bonds via the platform, which aims to increase efficiency and enable real-time data synchronisation among players.

With the development of a blockchain-based platform for digital bonds by several of the biggest financial organisations in Europe, the adoption of blockchain technology in the worldwide financial system keeps moving forward.

The EU has been following the blockchain industry for a while, and before the 2024 elections, its Digital Euro Legislation has reportedly been  given top precedence.

Credit Agricole CIB and SEB have implemented a distinctive validation procedure known as Proof of Climate awaReness to ensure the platform is sustainable and open. (PoCR).

The platform and blockchain technology were created in partnership with IT service provider Finaxys, and the environmental impact was assessed using a technique created by APL Data Center and implemented by SGS, a top-tier certification organisation.

A comparable energy consumption to non-blockchain systems is made possible by the Proof of Climate Awareness protocol, which also motivates participating nodes to constantly reduce the environmental impact of their infrastructure.

Users can more efficiently handle securities and raise money by utilising smart contracts. Although other projects are looking into using blockchain technology in conventional markets, it’s not yet clear when sobond will debut.

The banks claim that the technique will encourage participants to reduce their alleged carbon footprint, but it is still unclear how safe or decentralised it is. Each node will receive compensation based on a formula that takes into account how it affects the climate: the smaller the node’s environmental footprint, the greater the prize. So|bond would serve as the protocol’s initial use case, according to French IT company Finaxys.

The platform seeks to promote ethical investment practises that address climate change by rewarding nodes that prioritise environmental sustainability. The platform’s commitment to minimising its environmental effect and fostering creativity in the financial sector is highlighted by the use of this protocol.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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