Third-Largest Bank In France Societe Generale Proposes Use Of Defi Protocol Makerdao Defi Bitcoin News

French multinational investment bank and financial services company, Societe Generale, has proposed to leverage the decentralized finance (defi) protocol Makerdao. The proposal dubbed Security Tokens Refinancing was published on October 1 to Makerdaos forums and the submission aims to utilize the DAI stablecoin to refinance a covered bond concept.

Societe Generale Proposes Leveraging Makerdao and DAI Stablecoins to Refinance Bond Token

The international bank Societe Generales digital currency division has submitted a proposal on Makerdaos governance forums (MIP6 application) and the bank wants to refinance a bond token. The covered bond token, as its called, was issued on the Ethereum blockchain last year. The proposal is on behalf of European investment firm Societe Generale-Forge (SG-Forge), the MIP6 application notes.

This refinancing transaction experimentation is in line with the innovative process and solutions developed by SG-Forge, the banks digital currency division explains. This experimentation combines traditional capital market activities with the decentralized finance emerging and growing ecosystem. Societe Generales summary of the 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 Socit de Financement de lHabitat delivered by the Authorit de Contrle Prudentiel (as further described below) in the form of security tokens in the Ethereum public blockchain.

Makerdaos Rune Christensen: Post-Foundation Model of Organization Is Proving to Be More Scalable

On Friday, the founder of Makerdao, Rune Christensen, explained how the international bank from France proposed 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.

Turns out it was the future of France all along, Christensen added. 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.

What do you think about Societe Generales digital currency division leveraging Makerdao and DAI tokens to refinance a bond token? Let us know what you think about this subject in the comments section below.

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Bond Token, Covered Bond Token, Crypto, Cryptocurrency, DAI, Dai Stablecoin, decentralized finance, DeFi, makerdao, Rune Christensen, Societe Generale, Stablecoin

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