European banks launch ‘sustainable’ blockchain platform for digital bonds

Two banks from Sweden and France announced the launch of a new digital bond platform built on blockchain technology, reports Cointelegraph. The platform will enable institutional clients to issue, trade and settle bonds digitally, providing a more efficient and secure process than traditional methods.

The platform is a joint project of Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank, called “so|bond.“ According to the announcement from 3 April, the blockchain network will be using a validation protocol, “Proof of Climate awaReness,” and minimising its environmental footprint.

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

Each node will be remunerated according to a formula linked to its climate impact: the lower the environmental footprint, the larger the reward. So|bond would become the first use case for the protocol developed by the French-based IT provider Finaxys.

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