Societe Generale, the sixth largest bank in Europe, announced on Tuesday it has issued covered bonds worth €100 million (approx. $112 million) as a security token on Ethereum, the first of its kind.

Announced in a press release, the bank’s covered bond vehicle, issued the bonds — which are rated AAA by Moody’s and Fitch and directly registered on Ethereum‘s blockchain — on April 18.

The product comes as part of the bank’s intrapreneurship programme, Internal Startup Call, which launched in November 2017. In particular, this is the first pilot project by Societe Generale FORGE, which is experimenting with blockchain technology to tokenize capital market activities such as the issuing of bonds.

Indeed, Societe Generale are positioning themselves as a pioneer of blockchain adoption in the financial sector. Earlier this month, Kleinwort Hambros — a private bank owned by Societe Generale — issued a blockchain exchange-traded note in Luxembourg.

Blockchain-based Economy

More and more assets continue to make their way to the blockchain as tokens, from Paxos’ tokenization of gold to the tokenization of stocks and ETFs on NASDAQ-powered DX.Exchange.

More recently, CEDEX launched their exchange with $50 million worth of tokenized diamonds, and the European Union saw its first ever tokenized real estate vehicle carrying property worth €2 million.

Indeed, it is possible that the world is heading towards a fully blockchain-based economy.