The platform is the first to make use of a blockchain protocol known as "Proof of Climate."

Two Swedish and French banks have announced the launch of a new digital bond platform based on blockchain technology. The platform will allow institutional clients to digitally issue, trade, and settle bonds, making the process more efficient and secure than traditional methods.

The platform, called "so|bond," is a collaboration between Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank. An announcement made on April 3, the blockchain network will use a validation protocol called "Proof of Climate awaReness" while minimizing its environmental footprint.

The Proof of Climate awaReness protocol is designed to enable energy consumption comparable to non-blockchain systems and to incentivize participating nodes to reduce the environmental footprint of their infrastructures.

Each node will be compensated according to a formula based on its environmental impact: the smaller the environmental footprint, the greater the reward. So|bond would be the first use case for the protocol developed by Finaxys, a French-based IT provider.

As per Romaric Rolleti, Credit Agricole's head of innovation and digital transformation, the bond blockchain platform is part of a larger plan for the bank's digital transformation:

“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.”

The project joins a number of other efforts to investigate the use of blockchain, smart contracts, and the Internet of Things for environmental purposes. For example, the Bank for International Settlements, the Hong Kong Monetary Authority, and the United Nations Climate Change Global Innovation Hub will present the results of their Genesis 2.0 initiative — two prototypes of tokenized green bonds — in October 2022.

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