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Conventional European Financial Banks Form Alliance to Create a Blockchain-Based Trading Platform for Digital Bonds

SEB and Crédit Agricole, two major European banks, have announced so | bond, a blockchain-based platform for the issuance of digital bonds in the traditional financial industry.

The new platform, which is described as a “sustainable and open” blockchain, intends to increase efficiency and enable real-time data synchronization among users, the two banks said in a joint announcement on Monday.

Although this platform and blockchain technology was built in partnership with IT provider Finaxys, its environmental impact is measured using a method developed by APL Data Center and implemented by SGS, a global leader in certification.

So | Bond and It’s Future:

So | bond is the first global capital market use of this new technology functioning under the Proof of Climate awaReness protocol.

In lieu of traditional consensus procedures like Proof-of-Stake (PoS) or Proof-of-Work (PoW), the new platform employs a validation process dubbed “Proof of Climate awaReness” by the banks.

Following this launch, Anna Sjulander, Head of SSA DCM at SEB stated that: 

“The introduction of the digital bond platform is an important step for SEB, as well as for the issuers and investors that join the platform, as it will enable us to get insight into what the innovative realm of digital assets means for the financial services industry.”

Signifying its future use cases, she further added: 

“We see this as a great opportunity to learn what the future entails in terms of transparency, faster processing and operational simplifications, and will use a bond as the first stepping stone before expanding the use of the platform to other asset classes.”

According to the banks, the system will motivate members to reduce their so-called “carbon footprint,” although its security and decentralization remain uncertain.

The so | bond platform enables issuers to raise capital and manage securities using smart contracts, which automatically execute, control, or document events and actions based on the contract’s conditions.

The intention is that the system’s openness and transparency will create trust among market participants and allow for further innovation.

Other Financial Innovations in Blockchain: Will Bloomberg’s New AI For Financial Data Replace Financial Analysts? Let’s Explore. 

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