CEO of Forge Digital Capital Markets, Jean-Marc Stenger, said that their intention is not to resell the bond at this point in time. Forge Digital capital is a subsidiary of Societe Generale, and it is one of the many companies that is participating in an “intrapreneurial” program within the bank.
Societe Generale is one of many companies that experimented with issuing debt using the Ethereum blockchain network. As of now, SocGen still owns the bond that it created, but the lender will monitor whether the Ethereum’s smart contract can automate the typical functions of debt issuance. Stenger further added that they are demonstrating that all events of the bond are written in the smart contract, and all events are managed by it.
The company is also looking to offer blockchain-based bonds to external investors and tokenize other financial investments. Earlier, Spain-based financial institute Santander settled both sides of a $20 million bond transaction on Ethereum blockchain. Unlike Santander. SocGen is not planning to settle both sides of a transaction on a blockchain.
Stenger noted that their intention is to leverage the technology to have a more efficient way of issuing and processing bonds going forward.