Two major European financial institutions, the French investment bank Credit Agricole CIB and the Swedish bank SEB, have teamed together to develop a blockchain-powered platform for digital bonds, indicating a concerted effort by European institutions to promote change in conventional financial markets.
Proof of Climate Awareness Protocol for a Greener Future
So|bond is a blockchain-based digital bond platform announced by Credit Agricole CIB and SEB, two central European banks. The new platform will use a decentralized and transparent blockchain to boost productivity and make it easier for all participants to sync their data in real-time. Proof of Climate awaReness is the platform’s one-of-a-kind validation process, and it serves as an incentive for users to reduce their impact on the environment.
To facilitate capital raising and security management, the banks want to implement smart contracts, self-executing agreements with the contract’s provisions put into lines of code. They hope that doing so will boost confidence and openness in the market.
Credit Agricole CIB and SEB have taken an essential step with the launch of So|bond toward understanding the implications of digital assets for conventional financial institutions. The launch of the digital bond platform, as noted by SEB’s Head of SSA DCM (sovereigns, supranational, and agencies debt capital markets) Anna Sjulander, marks a significant step forward for banks and their clients by providing access to the exciting new world of digital assets in the financial services sector.
The platform was built in tandem with an IT provider, Finaxys, that focuses on blockchain-based solutions; the platform’s environmental impact is measured with a methodology created by APL Data Center and implemented by SGS, a global leader in certification.
The So|bond platform is the first implementation of this new technology in the global capital markets using the Proof of Climate awaReness protocol. The banks claim that users will be encouraged to reduce their carbon footprint with this new protocol, but the system’s security and decentralization still need to be verified.
Financial institutions developed the So|bond platform intending to improve the value proposition of digital assets in conventional banking through streamlined operations and reduced transaction times for issuers and investors. Long-term, they aim to increase the platform’s use across a broader range of asset types, paving the way for even more breakthroughs in the financial services sector.
Final Thoughts
Credit Agricole CIB and SEB have reached a significant milestone with the So|bond platform launch as they continue to investigate the potential of digital assets in conventional finance. Using a decentralized and secure blockchain system, they plan to encourage eco-friendly actions via the Proof of Climate awaReness protocol and boost efficiency, transparency, and trust in the market.