SEB and Crédit Agricole CIB are launching so|bond, a sustainable platform for digital bonds that utilizes blockchain technology to reward participants for enhancing their environmental impact.
The platform will allow issuers in capital markets to issue digital bonds on a blockchain network, improving efficiency and enabling real-time data synchronization among participants. Utilizing a validation protocol known as Proof of Climate awaReness, the network encourages participants to reduce their environmental footprint.
With so|bond, issuers can raise capital and manage securities through smart contracts, which are automated programs that execute, control, or document actions based on predefined contract terms. This technology employs a unique blockchain validation logic that ensures energy consumption is on par with non-blockchain systems while incentivizing participating nodes to continuously improve their environmental impact. Nodes will be rewarded based on their climate impact as evaluated by the Life Cycle Assessment ISO standard: the smaller the environmental footprint, the greater the reward.
The development of the platform and its blockchain technology involved collaboration with IT provider Finaxys, with the environmental footprint assessment carried out using a methodology created by APL Data Center and implemented by SGS.
Romaric Rollet, head of innovation and digital transformation at Crédit Agricole CIB, commented, “The platform’s innovative approach, combined with our strong commitment to green and sustainable finance, is central to our Societal Project. This achievement is part of the CACIB Digital Transformation Acceleration plan, and we are eager to collaborate on turning these innovations into market standards that better meet our clients’ needs in an evolving regulatory landscape.”
Both banks assert that the platform is designed to be adaptable for central bank digital currencies and will eventually expand to include other asset classes beyond bonds.