skip to Main Content
bitcoin
Bitcoin (BTC) $ 99,164.57 1.81%
ethereum
Ethereum (ETH) $ 3,481.59 0.79%
tether
Tether (USDT) $ 0.999953 0.10%
xrp
XRP (XRP) $ 2.31 0.37%
bnb
BNB (BNB) $ 704.34 2.07%
solana
Solana (SOL) $ 199.69 2.69%
dogecoin
Dogecoin (DOGE) $ 0.333702 0.92%
usd-coin
USDC (USDC) $ 1.00 0.20%
staked-ether
Lido Staked Ether (STETH) $ 3,474.24 0.72%
cardano
Cardano (ADA) $ 0.918023 0.52%

TradFi Banks Team Up to Create Digital Bonds Trading Platform on Blockchain

Consensus 2023 Logo

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Consensus 2023 Logo

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

French investment bank Credit Agricole CIB and Swedish bank SEB, stalwarts of traditional finance (TradFi) in Europe, have joined forces to develop a blockchain-based platform for digital bonds.

The platform will allow companies to raise capital by issuing digital bonds on a blockchain network with the aim of improving “efficiency and enabling real-time data synchronization,” according to a statement received by email. Users will be able to manage securities and raise capital through smart contracts.

The project joins others applying similar technology to conventional markets. In March, Brussels-based Euroclear said it may release a new platform for trading securities on a distributed ledger later this year. The banks’ statement didn’t say when the platform, named sobond, would start operating, and they hadn’t replied to an email seeking clarification by press time.

Aiming to make the platform “sustainable and open,” Paris-based CIB and Stockholm-based SEB are using a validation protocol called Proof of Climate awaReness, which they say encourages users to minimize their environmental footprint.

Proof of Climate awaReness encourages an energy consumption comparable to non-blockchain systems, the release said. “Each node will be remunerated for its efforts according to a formula linked to its climate impact,” meaning the lower the environmental footprint, the larger the reward.

The environmental footprint is measured according to France’s APL Data Center and applied by certification expert, SGS. The platform is the first use case operating under the Proof of Climate awaReness protocol in global capital markets, the statement said.

DISCLOSURE

Please note that our

privacy policy,

terms of use,

cookies,

and

do not sell my personal information

has been updated

.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a

strict set of editorial policies.

CoinDesk is an independent operating subsidiary of

Digital Currency Group,

which invests in

cryptocurrencies

and blockchain

startups.

As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of

stock appreciation rights,

which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG

.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Loading data ...
Comparison
View chart compare
View table compare
Back To Top