French financial conglomerate, Societe Generale, has successfully launched its inaugural digital green bond on the Ethereum blockchain, raising nearly $11 million.

The three-year senior preferred unsecured bonds were fully subscribed by AXA Investment Managers and Generali Investments through a private placement. AXA invested €5 million in Societe Generale’s euro-denominated ERC-20 stablecoin, EUR CoinVertible (EURCV).

The bank intends to allocate the funds to environmentally beneficial projects such as renewable energy and low-carbon transportation. Societe Generale introduced EURCV in April 2023, with the aim of bridging traditional capital markets with the digital asset ecosystem.

However, concerns have been raised by Stasis, the firm behind EURS stablecoin, citing potential risks and the centralized nature of Societe Generale’s stablecoin smart contract.

While Societe Generale’s foray into digital green bonds is commendable, valid questions have been raised about the stability and centralization of EURCV. Balancing innovation with risk mitigation is crucial for ensuring sustainable financial advancements.

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