Swedish and French banks are set to revolutionize the bond market with the launch of a new digital bond platform built on blockchain technology. The platform will provide institutional clients with a streamlined and secure process for issuing, trading, and settling bonds. As a result, making the entire process more efficient than traditional methods.
According to reports, SEB and Credit Agricole Bank have collaborated to launch a blockchain network named so|bond. Further, the announcement made on April 3 states that the platform will utilize a validation protocol named “Proof of Climate awaReness” while minimizing its ecological impact.
Based on the reports, the Proof of Climate awaReness protocol will enable energy consumption levels that are similar to those of non-blockchain systems. Additionally, the participating nodes will be incentivized to enhance their infrastructure’s environmental impact, resulting in an eco-friendly validation process
By doing so, the platform aims to reduce its carbon footprint and minimize energy consumption, which is a significant concern when it comes to blockchain networks. As per the announcement, each node on the “so|bond” blockchain network will receive compensation based on a formula tied to its environmental impact.
Furthermore, the validation protocol incentivizes a lower ecological footprint, resulting in a higher reward for each node. As the first use case for this protocol, developed by Finaxys, the “so|bond” platform intends to promote a more sustainable approach to blockchain technology.
By rewarding nodes that prioritize environmental sustainability, the platform aims to encourage responsible investment practices that address climate change. The use of this protocol highlights the platform’s dedication to reducing its environmental impact while promoting innovation in the financial industry.
