European traditional finance giants Credit Agricole CIB and SEB have joined hands to create a blockchain-based platform dedicated to digital bond trading. Named sobond, the platform seeks to make use of smart contracts to facilitate the issuance process of securities. Determined to make their platform ‘sustainable and open’, Credit Agricole CIB and SEB have incorporated a protocol called Proof of Climate awaReness.

Proof of Climate awaReness is a validation protocol which encourages users to help reduce their environmental footprint. The protocol determines rewards for users as per their individual energy consumption. In accordance with the environmental standards set by France’s APL Data Center, the environmental footprint is measured and validated by SGS, the certification expert. This makes sobond the first ever global capital market application of Proof of Climate awaReness.

The blockchain-based platform aims to improve efficiency of capital raising while at the same providing users with real-time data synchronization. It is meant to be ancillary, rather than a replacement, to the existing traditional finance markets and banks which, though successful, are often hampered by manual delays and other inefficiencies in the capital raising processes.

When it comes to capital financing, blockchain technology has offered some encouraging solutions. Blockchain is inherently transparent and secure as transactions are carefully timestamped and encrypted. Additionally, blockchain implementation creates an immutable and immutable audit trail that can be audited at any time and changed by all actors simultaneously. Although sobond with its integration of Proof of Climate awaReness might bring some trouble shooting to the digital bond trading space, blockchain has the potential to completely revolutionize the scene

In conclusion, blockchain is significantly affecting the traditional finance market with platforms such as sobond. Sobond, specifically, marks the first ever global capital markets application using Proof of Climate awaReness in order to encourage users to minimize their environmental footprint. With smarter capital markets providing easier, faster and cost-effective access to new investors, blockchain technology is receiving massive attention from governments and markets.



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