Société Générale completes repo transaction on Ethereum with the Banque de France

Société Générale successfully executes secured market transaction with Banque de France using digital securities and CBDC on blockchain.

Société Générale, France’s third largest bank by total assets after BNP Paribas and Crédit Agricole, has completed a blockchain-based repo transaction with France’s national bank, Banque de France.

The deal involves bonds issued on the Ethereum (ETH) blockchain from the Banque de France, used as collateral in exchange for the central bank digital currency, the French bank said in a Dec. 13 press release.

According to the announcement, this is the first repo transaction with a central bank using digital securities, demonstrating how blockchain technology can facilitate interbank transactions such as refinancing. It also highlights the potential of CBDCs to increase liquidity in digital financial markets.

“Société Générale deposited with the Banque de France as collateral certain bonds issued on the public Ethereum blockchain in 2020, in exchange for CBDC issued by the Banque de France on the DL3S blockchain.”

Société Générale

The transaction follows Société Générale’s recent foray into blockchain with the issuance of digital green bonds. In December 2023, the bank issued approximately $11 million of senior preferred unsecured bonds on the Ethereum blockchain, fully subscribed by AXA Investment Managers and Generali Investments. AXA Investment used Société Générale’s euro-denominated stablecoin EUR CoinVertible for the acquisition, with proceeds allocated to environmental projects.

The bank noted in the press release that the latest repo transaction was conducted by SG-FORGE, a subsidiary of Société Générale, which was established in 2018 to support the issuance, management and exchange of digital assets.