The transaction involved tokenized bonds issued on the Ethereum blockchain as collateral in exchange for CBDC issued by the Banque de France.
Societe Generale has completed the first repo transaction using blockchain technology within the Eurosystem’s central bank.
According to a Dec. 13 announcement, the transaction was carried out in collaboration with the Banque de France through Societe’s subsidiary for digital assets, Forge.
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.
