Popular French financial institution Societe Generale SFH has issued $122 million bonds as a form of the security token on the public Ethereum (ETH) Blockchain. The firm declared the development on its website on April 23.

Societe Generale SFH is mainly subsidiary of the leading financial services groups, known as Societe Generale which used the OFH blockchain to present 100 million euro of covered bonds, a type of security which is supported by special assets but remains on the issuer's balance sheet.

According to the report released on Tuesday by bond rating agency Moody's Investor's Service, Societe Generale was the only investor, this means that the firm has granted securities to itself and no other buyers were involved.

 Societe Generale SFH launches its first pilot project which has been developed in partnership with Societe Generale FORGE.  The Societe Generale FORGE is basically an internal startup released through the Group's intrapreneurial program known as Internal Startup Call.

The transaction's main purpose is to investigate a more effective way for bond insurance which will help to achieve better transparency, faster transferability, and settlement. The company further declared in the announcement that the product “proposes a new standard for issuances and secondary market bond trading and reduces cost and the number of intermediaries.”

Societe Generale has been part of various enterprise blockchain projects. The firm was the founding member of the IBM-powered trade finance platform known as we.trade. Later, Societe Generale released a joint venture known as Komgo SA in September 2018 and it became one of the leading financial organizations.

The venture will look after a new blockchain based platform for financing trading of commodities, focuses to digitize trade and commodities finance processes via a blockchain-based platform. The platform is developed by collaborating with the Ethereum-based blockchain infrastructure and solutions Group ConsenSys.

Before a few days, Private Bank Kleinwort Hambros which is proprietary of Societe Generale released an exchange-traded note made up of blockchain-related companies. The stocks consist of 20 companies which will gain benefit from the blockchain and distributed ledger technology blockchain.

Currently, a wide number of enterprises around the globe are experimenting with public blockchains, including leading firms, however, issuing actual digital securities from a global investment bank is rare.