French multinational investment bank and financial services company, Societe Generale, has proposed to leverage the decentralized finance (defi) protocol Makerdao. The proposal titled “Security Token Refinancing” was posted on October 1 on the Makerdao forums and the submission aims to use the DAI stablecoin to refinance a covered bond concept.
Societe Generale Proposes Leveraging Makerdao and DAI Stablecoins to Refinance Bond Token
The digital currency division of the international bank Société Générale has submitted a proposal to the Makerdao governance forums (MIP6 application) and the bank wishes to refinance a bond token. The “covered bond token,” as it’s called, was issued on the Ethereum blockchain last year. The proposal is “in the name of the European investment company Société Générale-Forge (SG-Forge)”, notes the MIP6 application.
“This refinancing transaction experimentation is in line with the innovative process and solutions developed by SG-Forge,” the bank’s digital currency division explains. “This experiment combines traditional capital market activities with the emerging and growing ecosystem of decentralized finance. The summary of Societe Generale’s proposal adds:
The “OFH Tokens”: the OFH Tokens are characterized as covered bonds under French Law backed by home loans and benefiting from a statutory privilege, issued by Societe Generale SFH (SG SFH) a specialized credit institution with the status of Société de Financement de l’Habitat delivered by the Authorité de Contrôle Prudentiel (as further described below) in the form of security tokens in the Ethereum public blockchain.
Makerdao’s Rune Christensen: the post-foundation organizational model turns out to be more scalable
Makerdao founder Rune Christensen on Friday explained how the French international bank is proposing to use the protocol. “Societe Generale, the third-largest bank in France, just made a collateral onboarding application to Maker for 20 million USD,” Christensen said. “Backed by EUR bonds, proposed by their blockchain subsidiary.”
“It turns out that was the future of France from the start,” added Christensen. “Amazed that I had no clue about this at all the whole time. This is one of [the] multiple recent examples in Maker Governance of how the post-foundation model of organization is proving to be more scalable.”
