SG delves 'DEEP' with first blockchain covered bond

Blockchain crypto dlt distributed ledger adobe stock
By Bill Thornhill
29 Apr 2019

Société Générale may have provided market participants with a glimpse into the future after becoming the first bank to issue a covered bond as a security token on a public blockchain. Development of this technology is still at an early stage and is not without its risks, but proponents believe blockchain could revolutionise the covered bond market, reducing settlement times to just a few seconds.

Société Générale SFH  issued a €100m obligations de financement de l’habitat (OFH) as a security token on April 18. The OFH tokens, which were retained by SG, have been rated Aaa by Moody’s and AAA by Fitch and were registered on the ethereum blockchain.

The deal was ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial