Societe Generale and Banque de France have successfully conducted the first repo transaction using blockchain technology within the Eurosystem's central banking framework.
This transaction was facilitated through Societe Generale's digital asset subsidiary, Forge, and involved tokenized bonds on the Ethereum blockchain as collateral. The cash component was represented by central bank digital currency (CBDC) issued by the Banque de France.
The use of blockchain technology in repo transactions promises to streamline processes, reduce settlement times, and provide an immutable record of transactions.
Tokenization, the process of converting traditional debt instruments into digital tokens, is gaining traction in the financial sector due to enhanced transparency and efficiency.
The Banque de France has been exploring the applications of its CBDC since 2021, including trials with major banks and cross-border transactions.
Societe Generale, as one of the world's largest financial institutions, is actively developing its digital assets business and has partnered with Bitpand to expand its euro-denominated stablecoin.
The collaboration between Societe Generale and the Banque de France represents a significant milestone in the integration of traditional finance and blockchain technology, with the potential to redefine financial transactions and attract more participants to the digital asset space.