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First DeFi credit for traditional major bank

First DeFi credit for major bank Société Générale

Source: Société Générale

The French bank Société Générale plans to borrow $30 million in DAI from decentralized organisation Maker DAO. This would be the first DeFi credit for a traditional major bank and would represent a pioneering cooperation between the DeFi and the traditional banking sector.

Société Générale applies to allow own token as collateral for credit

Société Générale’s subsidiary SG Forge has proposed to Maker DAO to deposit the in-house OFH token as collateral for the loan of 30 million DAI. The OFH token is a $100 million Société corporate bond based on the Ethereum blockchain.

MKR holders and delegates had the opportunity to vote on this proposal. On July 14, Maker announced the voting results via Twitter: “MKR holders and Delegates voted to onboard OFH tokens as a new real-world asset collateral type in the Maker Protocol”. A clear majority of 83.16% of those eligible to vote supported the application. 

Pioneering collaboration of DeFi & traditional banking sector

The decentralized organization Maker DAO’s acceptance of the OFH bank token as collateral for the credit is unprecedented in history and could serve as a pioneer for collaboration between the DeFi and the traditional banking sector. The collaboration also opens up new perspectives for Maker DAO: “The proposed transaction opens new avenues for DAI generation backed by highly rated and regulated real-world assets with tokenization overlay”.

Disclaimer

This article does not provide investment advice. Historical cryptocurrency data is not a guarantee of future market developments. The author may hold several of the cryptocurrencies mentioned in this article.

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