Last week BNP Paribas (BNPP) structured and tokenized a project finance bond on the public Ethereum blockchain. The proceeds were used to fund solar energy projects through EDF ENR, which helps businesses and individuals install solar panels.
The French bank, Europe’s second largest, cited a key benefit of tokenization as enabling smaller renewable energy projects to raise funds and it allows investments in smaller amounts. Additionally, with the amount of greenwashing that happens, blockchain adds transparency.
Perhaps because the bond investor was BNP Paribas Asset Management, there was no need to keep the bond on the blockchain and within 48 hours, it was converted to a traditional bond. In contrast, we believe that others that have issued public blockchain bonds, such as Societe Generale Forge, Santander, and the European Investment Bank, have retained the asset as tokens.
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