Société Générale and Banque de France complete blockchain repurchase transaction

ChainCatcher news, according to Cointelegraph, Société Générale has completed the first repurchase transaction using blockchain technology within the euro system central bank. This transaction was carried out in collaboration with the Banque de France through Société Générale's digital asset subsidiary, Forge.

In the Forge transaction, the repurchase involved tokenized bonds issued in 2020 on the Ethereum blockchain as collateral, while the central bank digital currency (CBDC) issued by the Banque de France was exchanged as cash. Société Générale stated that this transaction demonstrates the technical feasibility of interbank refinancing operations on-chain: "It illustrates the potential of central bank digital currencies to enhance the liquidity of digital financial securities."

It is reported that a repurchase transaction is short for a repurchase agreement, which is a financial transaction in which one party sells securities to another and agrees to repurchase them later at a predetermined price.