Société Générale and Banque de France push blockchain innovation
The project highlights the feasibility of using blockchain for interbank refinancing, suggesting improvements in liquidity management and settlement times.
Société Générale has achieved a milestone by conducting the first repo transaction using blockchain within the Eurosystem. The transaction carried out with Banque de France through Société’s digital asset subsidiary Forge, involved tokenised bonds issued on Ethereum in 2020 as collateral. Central bank digital currency (CBDC) issued by Banque de France was exchanged as cash, showcasing the potential of blockchain in modern financial operations.
The move highlights the feasibility of conducting interbank refinancing on-chain. Société Générale stated that using CBDCs for such transactions could improve liquidity for digital financial securities. Tokenisation, which converts traditional securities into digital tokens, offers faster settlement times and an immutable record of transactions, making it a promising technology for the financial sector.
Banque de France has been actively exploring CBDC use cases since 2021, including cross-border transactions and collaborations with global partners like the Hong Kong Monetary Authority. Meanwhile, Société Générale continues to expand its digital asset operations, including launching its euro-denominated stablecoin EUR convertible. The bank’s innovative efforts reflect its position as one of the world’s largest financial institutions.
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