French multinational investment bank and financial services company Société Générale proposed to take advantage of the Makerdao decentralized finance (challenge) protocol. The proposal, called “Security Token Refinance,” was posted on October 1 to the Makerdao Forums and the submission aims to use the DAI stablecoin to refinance the covered bond concept.
Societe Generale proposes utilizing Makerdao and DAI Stablecoins to refinance Bond coins
Societe Generale International’s digital currency division submitted a proposal on the Makerdao Governance Forums (MIP6 app) that the bank wants to refinance a bond token. The “covered bond token,” as it is called, was released on the Ethereum blockchain last year. The proposal is “on behalf of the European investment firm Societe Generale-Forge (SG-Forge),” the MIP6 request indicates.
“The experience of these refinancing transactions is in line with the innovative process and solutions developed by SG-Forge,” explains the bank’s crypto division. “This experience combines traditional capital market activities with the emerging and growing ecosystem of decentralized finance.” Societe Generale’s summary of the proposal adds the following:
“OFH tokens”: OFH tokens are French law-covered bonds backed by housing loans and benefiting from a statutory concession, issued by the Societe Generale SFH (SG SFH) a specialized credit institution with the status of Société de Financement de l Habitat delivered by Authorité de Contrôle Prudentiel (shown below) in the form of security tokens on the Ethereum public blockchain.
Makerdao’s Ron Christensen: The post-establishment organization model has proven to be more scalable
On Friday, Makerdao founder Rune Christensen explained how the World Bank from France suggested using the protocol. “Société Générale, the third largest bank in France, has just submitted a guarantee request to Maker for $20 million,” Christensen said. “Backed by Eurobonds, proposed by its blockchain company.”
“It turns out he was the future of France all along,” Christensen added. “Surprised I have no idea about this all the time. This is one of the [the] Many recent examples in Maker Governance of how the enterprise post-incorporation model is proving to be more scalable.”
What do you think of the crypto division of Societe Generale taking advantage of Makerdao tokens and DAI to refinance bond tokens? Tell us what you think about it in the comments section below.
Defi, Bond Token, Covered Bond Token, Crypto, Cryptocurrency, DAI, Dai Stablecoin, Decentralized Finance, DeFi, makerdao, Rune Christensen, Societe Generale, Stablecoin