Today Societe Generale-FORGE (SG-FORGE) said it had executed a repo transaction using wholesale central bank digital currency (wCBDC) and a public blockchain digital bond it issued in 2020.
Repurchase (repo) transactions involve the sale of collateral such as bonds, and their subsequent repurchase at a slightly higher price, often overnight. They’re a common way for banks and institutions to borrow and lend cash secured by the collateral. Typically, collateral takes time to settle, which constrains the duration and speed of repo transactions. So, the benefit of blockchain is the potential of instant settlement, which enables intraday repo.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
