Lucy Jane 
European banks build blockchain bond platform
Two financial institutions, one from Sweden and the other from France, have announced the launch of a new digital bond platform that is based on blockchain technology. The platform will provide its institutional customers with the ability to digitally issue, trade, and settle bonds, thereby making the process more time- and cost-effective while also improving its level of safety.
Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank have collaborated to create the platform known as “so|bond.” The blockchain network is going to implement a validation protocol called “Proof of Climate awaReness” to lessen its negative impact on the environment, as stated in an announcement that was made on April 3rd.
The Proof of Climate awaReness protocol enables energy consumption that is comparable to that of systems that do not use blockchain technology and incentivizes participating nodes to improve the environmental footprint of their infrastructures.
Each node will receive compensation according to a formula that is based on its impact on the environment. The less of an environmental footprint each node leaves, the higher the compensation will be. The French information technology company Finaxys is responsible for developing the protocol, and So|Bond would be the first application to use it.
According to Romaric Rolleti, head of innovation and digital transformation for Credit Agricole, the bank’s bond blockchain platform was part of a larger plan for the digital transformation of the bank:
“The platform’s innovative approach, both to the blockchain infrastructure and to the securities market, is coupled with the strong commitment to green and sustainable finance that is at the center of our Societal Project.”
For example, the results of the Genesis 2.0 initiative, which include two prototypes of tokenized green bonds, will be presented in October 2022 by the Bank for International Settlements, the Hong Kong Monetary Authority, and the United Nations Climate Change Global Innovation Hub.