Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank have launched a new digital bond platform called “so|bond,” which uses blockchain technology. This is a significant development for the industry as it offers a more efficient and secure process than traditional methods. The launch of this project is particularly noteworthy because it is using a validation protocol called “Proof of Climate awaReness,” making it the first use case of its kind.
The protocol enables an energy consumption comparable to non-blockchain systems while minimizing its environmental footprint. This is crucial given that blockchain technology has been criticized for its high energy consumption. In addition, each node will be remunerated based on its climate impact, with the lower environmental footprint resulting in a larger reward. This innovative approach has the potential to incentivize more sustainable practices in the industry and to reduce the environmental impact of blockchain technology.
Credit Agricole’s head of innovation and digital transformation, Romaric Rolleti, believes that the bond blockchain platform is part of a larger plan for the bank’s digital transformation. The platform’s innovative approach to the blockchain infrastructure and securities market is coupled with a strong commitment to green and sustainable finance, which is at the center of the bank’s Societal Project. This is a positive development for the industry as it demonstrates the potential for blockchain technology to be used in a more sustainable and responsible way.
The launch of this project joins many other efforts to explore the use of blockchain, smart contracts, and the Internet of Things for a global environment cause. In October 2022, the Bank for International Settlements, the Hong Kong Monetary Authority, and the United Nations Climate Change Global Innovation Hub presented the results of their Genesis 2.0 initiative, which
included two prototypes of tokenized green bonds. These prototypes were designed to finance climate and environmental projects, and their success suggests that blockchain technology can play an important role in achieving sustainability goals.
Overall, the launch of the “so|bond” platform is a positive development for the industry and for the environment. It demonstrates the potential for blockchain technology to be used in a more sustainable and responsible way, and it incentivizes the adoption of more eco-friendly practices. As the world becomes more aware of the need for sustainability, it is essential that the industry embraces technologies that can help achieve these goals.