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Société Générale has completed the first repo transaction using blockchain technology within the Eurosystem’s central bank.
<a data-ct-non-breakable="null" href="https://www.societegenerale.com/en/news/press-release/societe-generale-successfully-completed-first-repo-transaction-public-blockchain-banque-de-france" rel="null" target="null" text="null" title="null">According</a> to a Dec. 13 announcement, the transaction was carried out in collaboration with the Banque de France through Société’s subsidiary for digital assets, Forge.&nbsp;
A repo transaction, short for repurchase agreement, is a financial transaction where one party sells a security to another with a promise to repurchase it at a later date at a predetermined price. It is, essentially, a short-term borrowing mechanism where securities serve as collateral.&nbsp;
In the case of the Forge transaction, the repo involved tokenized bonds issued in 2020 on the Ethereum blockchain as collateral, while <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/what-are-cbdcs-a-beginners-guide-to-central-bank-digital-currencies" rel="" target="_blank" text="null" title="https://cointelegraph.com/learn/articles/what-are-cbdcs-a-beginners-guide-to-central-bank-digital-currencies">central bank digital currency (CBDC)</a> issued by the Banque de France was exchanged as cash.&nbsp;
Société Générale said the transaction demonstrates the technical feasibility of interbank refinancing operations onchain:&nbsp;
<blockquote>
 “It illustrates the potential of a central bank digital currency to improve the liquidity of digital financial securities.”
</blockquote>
Securities tokenization involves converting a traditional debt instrument, like a bond, into a digital token representing its ownership. When traded in a blockchain, these tokens have an immutable record of transactions and faster settlement times compared to traditional systems.&nbsp;
For instance, United States debt instruments tokenized onchain by private companies <a data-ct-non-breakable="null" href="https://app.rwa.xyz/treasuries" rel="null" target="null" text="null" title="null">reached</a> $2.9 billion in December 2024.&nbsp;
<figure>
 <img alt="Société Générale, Banque de France complete blockchain repo transaction" src="https://s3.cointelegraph.com/uploads/2024-12/0193c0e8-b96b-7769-a63d-0d87fc83fdff" title="">
 <figcaption style="text-align: center;">
 Tokenized US Treasurys, bonds and cash equivalents as of Dec. 12, 2024. Source: RWA.xyz
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/what-are-tokenized-debt-instruments" rel="" target="_blank" text="null" title="https://cointelegraph.com/learn/articles/what-are-tokenized-debt-instruments">What are tokenized debt instruments? A beginner’s guide</a>
The Banque de France has been exploring use cases for its CBDC since 2021, when it <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/french-central-bank-pilots-blockchain-based-cbdc-for-debt-market?utm_source=chatgpt.com" rel="" target="_blank" text="null" title="https://cointelegraph.com/news/french-central-bank-pilots-blockchain-based-cbdc-for-debt-market?utm_source=chatgpt.com">piloted a trial</a> involving several banks in the country’s debt market, including Société Générale, BNP Paribas, Credit Agricole CIB and HSBC.
The institution has also experimented with cross-border transactions. In 2024, the central bank <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/banque-france-hkma-cbdc-tokenization-collaboration" rel="" target="_blank" text="null" title="https://cointelegraph.com/news/banque-france-hkma-cbdc-tokenization-collaboration">signed a bilateral collaboration</a> with the Hong Kong Monetary Authority (HKMA) for wholesale CBDC and tokenization projects.
Likewise, Société Générale has been developing its digital assets businesses. In September, the company announced a partnership with trading platform Bitpanda <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/societe-generale-partners-bitpanda-euro-stablecoin-mica" rel="" target="_blank" text="null" title="https://cointelegraph.com/news/societe-generale-partners-bitpanda-euro-stablecoin-mica">to expand the reach</a> of its euro-denominated stablecoin, dubbed EUR CoinVertible (EURCV). The bank is among the world’s largest financial groups, <a data-ct-non-breakable="null" href="https://www.statista.com/statistics/1544546/socit-gnrale-total-assets/" rel="null" target="null" text="null" title="null">holding</a> nearly $1.6 trillion in total assets as of 2023. Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/project-guardian-explained" rel="" target="_blank" text="null" title="https://cointelegraph.com/learn/articles/project-guardian-explained">Project Guardian explained: A global initiative for asset tokenization</a>

Société Générale, Banque de France complete blockchain repo transaction

Cointelegraph

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