TechFlow News, December 14 — According to Cointelegraph, French bank Société Générale has completed the first repurchase transaction within the euro system's central banking framework using blockchain technology. The transaction was carried out through Forge, Société Générale’s digital asset subsidiary, in collaboration with the Banque de France.
In the Forge transaction, the repurchase involved a tokenized bond issued in 2020 on the Ethereum blockchain as collateral, while a central bank digital currency (CBDC) issued by the Banque de France was used as cash consideration. Société Générale stated that this transaction demonstrates the technical feasibility of conducting interbank refinancing operations on-chain: "It illustrates the potential of central bank digital currencies to enhance the liquidity of digital financial securities."
Repurchase transactions, commonly known as repos, are financial agreements in which one party sells securities to another party with a commitment to repurchase them at a predetermined price at a later date.
