According to TechFlow, on December 14, Societe Generale, through its digital asset subsidiary Forge, cooperated with the Bank of France to complete the first repurchase transaction using blockchain technology within the Eurosystem central bank.
In this transaction, the repo used tokenized bonds issued in 2020 on the Ethereum blockchain as collateral, and the central bank digital currency (CBDC) issued by the Bank of France was exchanged as cash. Societe Generale said this proved the technical feasibility of on-chain operations for interbank refinancing.
The transaction demonstrates the potential of central bank digital currencies to increase the liquidity of digital financial securities. A repo transaction is a financial transaction in which one party sells a security to another party with a promise to buy it back at a predetermined price at a later date.