Swedish Bank (SEB) teamed with a French investment-oriented bank Credit Agricole CIB alongside other European traditional finance (TradFi) entities in developing blockchain-based digital bonds.
Blockchain-based Platform to Lower Environmental Footprint
The blockchain-based platform is set to utilize the Proof of Climate awaReness protocol for validations. Besides, the banks are projecting to leverage the new protocol to encourage users to avert their environmental footprint.
The platform is set to facilitate companies in generating capital by issuing digital bonds. Leveraging the blockchain network will enable the entities to realize higher efficiency and synchronize data immediately.
Generating Capital Through Smart Contracts
The blockchain-based platform will benefit users through the improved capability of managing securities and generating capital by utilizing smart contracts. The project developed jointly by tradfi banks in Europe replicates the same technological approach devices by conventional markets.
Importantly, Brussels-headquartered Euroclear had in March 2023 announced releasing a pioneering platform targeting to support trading securities created on the distributed ledger. Although noncommittal on the release date, the statement identified the platform as Sobond.
Paris-headquartered CIB echoed sentiments by its Stockholm partner SEB that the platform would embrace openness and sustainability principles. The platform will utilize the Proof of climate awaReness as a basis for protocol validation, thereby reducing the adverse impact on the environment.
Remunerating Environmentalism
The statement conveyed to the media identified the Proof of Climate awaReness as the basis for nurturing sustainability and environmentalism since it implores participants to march their energy consumption to the non-blockchain systems.
The validation protocol is set to feature integrated remuneration for its compliance with the set standards. In particular, each node will deploy the formula-linked remuneration relative to the climate impact.
The validation protocol nurtures environmentalism since earning larger rewards is allocated to those with the lowest environmental footprint.
The Swedish Bank (SEB) agreed to the proposals by the French bank Credit Agricole CIB for the blockchain-based protocol to assess environmental footprint by using France’s APL Data Center. Also, the measurement would align with the application issued by the SGS certification expert.
The blockchain-based platform is the pioneer for any designed to issue digital bonds targeting capital markets within the Proof of Climate awaReness Protocol.
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