Chain News by Thebittimes.Com

The Swedish krona-based Climate Awareness Bond will be issued on a blockchain that incentivizes node operators to improve environmental footprint of infrastructure. The European Investment Bank (EIB) has issued a blockchain -based digitial bond powered by environmentally-incentivized node infrastructure. An announcement from the financial institution outlined the key points of a ‘digital native green bond’ denominated in Swedish krona. The 1 billion kr bond is set to offer a 3.638% fixed rate over two years to institutional investors. The Climate Awareness Bond is also being touted as the first blockchain -based bond to be registered on the Luxembourg Stock Exchange Securities Official List and displayed on the Luxembourg Green Exchange. The bond will operate on the recently launched sustainable blockchain digital bond platform So|bond. As Cointelegraph previously reported, the platform allows issuing, trading and settlement of digital bonds using pro-environmental incentives for it...

The platform makes the first use case of a so-called “Proof of Climate” blockchain protocol. Two banks from Sweden and France announced the launch of a new digital bond platform built on blockchain technology. The platform will enable institutional clients to issue, trade and settle bonds digitally, providing a more efficient and secure process than traditional methods. The platform is a joint project of Skandinaviska Enskilda Banken (SEB) and Credit Agricole Bank, called “so|bond.“ According to the announcement from April 3, the blockchain network will be using a validation protocol, “Proof of Climate awaReness,” and minimizing its environmental footprint. The Proof of Climate awaReness protocol is said to enable an energy consumption comparable to non-blockchain systems, and incentivize participating nodes to improve the environmental footprint of their infrastructures. Each node will be remunerated according to a formula linked to its climate impact: the lower the environmental...