European Traditional Finance Banks: The new platform, said to be a “sustainable and open” blockchain, aims to improve efficiency and enable real-time data synchronization across participants, a joint announcement from the two banks on Monday said.
European Traditional Finance Banks Blockchain-Based
European Traditional Finance Banks: Major European banks SEB and Crédit Agricole have launched so bond, a new blockchain-based platform for issuing digital bonds in the traditional financial sector.
Instead of relying on traditional consensus mechanisms like Proof-of-Stake (POS) or Proof-of-Work (POW), the new platform uses a validation method the banks have called “Proof of Climate awareness.”
According to the banks, the method will incentivize participants to minimize their so-called climate footprint, but it remains unknown how secure or decentralized it is.
The intention is that the open and transparent nature of the system will foster trust between market participants and allow further innovations to happen.
Commenting on the launch, Anna Sjolander, Head of SSA DCM (sovereigns, supranational and agencies debt capital markets) at SEB, said the new platform will allow the banks to study what digital assets will mean for traditional finance firms.
Create Digital Bonds
European Traditional Finance Banks: French investment bank Credit Agricole CIB and Swedish bank SEB, two stalwarts of traditional finance 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. Last week, Brussels-based Euroclear said it may release a platform for trading securities on a distributed ledger later this year. The banks’ statement didn’t say when the platform, named so bond, would start operating, and it didn’t respond to a request for comment.
Trading Platform on Blockchain
European Traditional Finance Banks: The project joins others applying similar technology to conventional markets. Last week, Brussels-based Euroclear said it may release a platform for trading securities on a distributed ledger later this year. The banks’ statement didn’t say when the platform, named so bond, would start operating, and it didn’t respond to a request for comment.
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 energy consumption at a level that’s 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,”
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.