Societe Generale has carried out a collateralised market transaction fully executed on blockchain with France's central bank.
SocGen's SG-Forgeis digital assets-focused subsidiary is claiming the first repo transaction in digital securities with a Eurosystem central bank.
The French lender deposited bonds issued in 2020 as collateral with the Banque de France on the public Ethereum blockchain in exchange for CBDC issued by the central bank on its DL3S blockchain.
SocGen says the transaction demonstrates the technical feasibility of interbank refinancing operations directly on blockchain. It also shows the potential of a CBDC to improve the liquidity of digital financial securities.