The Sustainable Digital Finance Alliance (SDFA) along with the HSBC Center of Sustainable Finance has released a
whitepaper on blockchain for green bonds. As of 2018, green and sustainable Bond issuances were at $167.3 billion, which is just 2% of the total bond market.
The report highlights the use of distributed ledger technology (DLT) to expand the green bond market by increasing the overall efficiency by ten times.
The DLT green bond market is tiny at the moment, with only a few trials conducted in the past. Earlier this year,
BBVA Group announced it used blockchain to negotiate the terms of a structured green bond for Spanish insurer
MAPFRE. BBVA has also arranged a €220 million ($240 million)
sustainable “Schuldschein” loan for the Madrid Government using blockchain.
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