SEB and Crédit Agricole are jointly launching a ‘sustainable and open’ platform for digital bonds built on blockchain technology.
According to SEB, through the so|bond will enable issuers in capital markets to be able to issue digital bonds onto a blockchain network, aiming at improving efficiency and enabling real-time data synchronisation across participants.
The blockchain network is using a validation protocol, Proof of Climate awaReness, that encourages its participants to minimise their environmental footprint.
The Proof of Climate awaReness protocol enables an energy consumption comparable to non-blockchain systems and incentivises participating nodes to continually improve the environmental footprint of their infrastructures.
More specifically, each node will be remunerated for its efforts according to a formula linked to its climate impact evaluated with the Life Cycle Assessment ISO standard: the lower the environmental footprint, the larger the reward will be.
The platform and the blockchain technology were developed in collaboration with the IT provider Finaxys. The environmental footprint is measured according to a methodology developed by APL Data Center and applied by SGS, a world-leading certification expert. so|bond is the first use case of this new blockchain technology operating under the Proof of Climate awaReness protocol in global capital markets.
The platform is sustainable by its invitation to reduce resources consumption and open to interested parties who want to review, contribute to and participate in the semi-permissioned model.
SEB head of SSA DCM Anna Sjulander said, “The launch of the digital bond platform is an important step for SEB, and for the issuers and investors that join the platform and will allow us to gain insights into what the innovative space of digital assets mean for the financial services industry. 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.
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