Major banks in Sweden, France, and Liechtenstein will use blockchain infrastructure to expand support for tokenized assets. Skandinaviska Enskilda Banken (SEB) and Crédit Agricole Corporate and Investment (CIB) are jointly launching a green initiative so|bond to deal with digital bonds. VP Bank is working with blockchain project Metaco to tokenize its clients’ physical assets.

European Banks Use Blockchain for Asset Tokenization

Swedish bank SEB and French bank Crédit Agricole CIB are launching so|bond, a blockchain platform that will allow institutional clients to issue, trade, and settle tokenized bonds. 

The platform was developed in collaboration with French IT provider Finaxys. It uses the green validation protocol Proof of Climate awaReness, which encourages users to reduce energy consumption. The essence of the Proof of Climate awaReness protocol is that each network validator will be rewarded according to their impact on the climate — the lower the environmental impact, the greater the reward.

According to Romaric Rollet, Head of Innovation at Crédit Agricole, the bank is committed to “green and sustainable finance,” so|bond is just the first step towards digital transformation. He also noted that blockchain fully met all of the company’s security requirements.

In fact, blockchain technology is actively used by major representatives of the banking sector. For example, Deutsche Bank (DBK) intends to create a DeFi platform for securities tokenization based on Memento’s technologies, and Goldman Sachs has already launched a platform for tokenization on the blockchain Canton.

It has also been reported that one of Liechtenstein’s largest banks, VP Bank, announced a collaboration with Swiss tech company Metaco as part of its efforts to optimize the tokenization of physical assets.

Thus, as part of the collaboration, the bank will use Metaco Harmonize to mint, burn, and store tokenized assets. Marcel Fleisch, VP Bank’s Chief Product Officer, said the organization is “rethinking wealth management” and is ready to offer its customers a combination of traditional banking and digital ecosystems.

According to the latest research, the volume of the tokenized assets market can reach $5 trillion by 2030, while earlier analysts predicted the market growth to $16 trillion. To learn more about tokenization and the reasons why it has become one of the most popular ways to empower the traditional financial market, read the article by CP Media.

Author: Nataly Antonenko
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