The European banking sector has taken a major step forward with the launch of a revolutionary new block chain platform for digital bonds. The platform, called “so|bond”, is a joint project of Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank of Sweden and France, respectively.
It enables institutional clients to issue, trade and settle bonds digitally, offering a more efficient and secure process than traditional methods.
The platform also uses a validation protocol, “Proof of Climate Awareness”, which aims to minimize the environmental footprint of blockchain networks.
This protocol enables energy consumption comparable to non-blockchain systems and incentivizes participating nodes to improve the environmental footprint of their infrastructure.
Each node will be remunerated according to a formula linked to its climate impact: the lower the environmental footprint, the greater the reward. So|bond would become the first use case for the protocol developed by French IT provider Finaxys.
The launch of the so|bond platform is a key achievement for the European banking industry, which has explored the use of blockchain, smart contracts and the Internet of Things for global environmental causes.
The platform is sustainable and open, allowing issuers to raise capital and manage securities through smart contracts, which automatically execute, control or document events and actions in accordance with the terms of the contract.
A new era of sustainable finance for Europe
Blockchain technology has the potential to modernize and digitize the banking and financial services sectors through a decentralized and efficient infrastructure.
The so|bond platform will enable issuers to raise capital and manage securities through smart contracts, programs that automatically execute, control or document events and actions in accordance with the terms of the contract.
The platform’s open, transparent and secure model also fosters trust between market participants and enables other innovations such as the use of a future central bank digital currency.
This new block chain is a significant development in the field of sustainable finance, an area where Europe has led the way. Using blockchain technology to promote sustainable and environmentally friendly practices is an innovative approach that could have far-reaching implications for the future of finance.
Evidence of climate awareness
One of the main obstacles to the widespread adoption of blockchain technology is that it is often seen as an energy-intensive solution.
Although Proof of Stake protocols use much less energy than those using Proof of Work, there is still room for improvement.
The so|bond platform is built on a new type of blockchain validation logic, the Proof of Climate Awareness protocol. It enables energy consumption comparable to non-blockchain systems and incentivizes participating nodes to continuously improve the environmental footprint of their infrastructure.
The blockchain platform and technology was developed in collaboration with IT provider Finaxys. The environmental footprint is measured using a methodology developed by APL Data Center and applied by SGS, a global 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 European banking sector has long been a driver of sustainable finance, and the launch of the so|bond platform marks an important milestone in this area.