TechFlow reported on December 14 that Société Générale completed the first repurchase transaction using blockchain technology within the Eurosystem central bank. The transaction was completed in cooperation with the Bank of France through Forge, Société Générale’s digital asset subsidiary.
In the Forge transaction, the repo involved tokenized bonds issued in 2020 on the Ethereum blockchain as collateral, while the central bank digital currency (CBDC) issued by the Bank of France was exchanged as cash. Societe Generale said the transaction proved the technical feasibility of on-chain operations for interbank refinancing: "It illustrates the potential of central bank digital currencies to increase the liquidity of digital financial securities."
According to reports, a repurchase transaction is a short form of a repurchase agreement, which is a type of financial transaction where one party sells securities to another party and commits to repurchasing them later at a predetermined price.