The blockchain subsidiary of Société Générale, Forge, wants to launch an experiment on DeFi. He chose MakerDAO for this.
Traditional finance and DeFi, two irreconcilable worlds? Certainly not. On the one hand, large international banks now offer their clients investments in cryptocurrencies.
But on the other hand, experiments are being carried out, particularly in Europe, around public blockchains. This is the case, for example, of Société Générale with the Ethereum blockchain. Its subsidiary Forge issued security tokens on Ethereum.
A MakerDAO partner banking institution?
It was only a first step though. Forge now wishes to explore more deeply the mechanisms of decentralized finance. And for these beginnings, the regulated entity chooses a DeFi pioneer, namely MakerDAO.
This proposal is now submitted to the governance of the community. Société Générale offers the submission of bond tokens as collateral for a DAI stablecoin loan. The title: ” Refinancing of Security Tokens “.
This is a great first for a bank of this size. But it is also the first major collaboration between a traditional bank and the DAI protocol – which remains to be confirmed however.
Its realization would open the door to a closer integration between traditional finance, digital finance and blockchain. It should be remembered, however, that Forge’s initiative is part of the framework of experiments.
A loan of $ 20 million in DAI
Forge therefore offers a loan with collateral for an amount that could reach up to $ 20 million in DAI. As the company specifies, this would be a first pilot or use case. This aims to refinance the OTH tokens belonging to Société Générale.
But it is also a test for the French legal framework. The transaction therefore also aims to “ shape and promote experience in the French legal framework “. Another goal is to promote ” a profitable service and foster liquidity of digital bonds. “
Technically and legally, however, the operation promises to be complex, as evidenced by the workflow presented by Forge. No less than six separate entities would be involved in the process. Above all, it calls for the participation of a decentralized network based on governance.
Will the MakerDAO community respond present? The interest is in any case not financial – at this stage. Indeed, ” the stability fee will be close to the interest rate paid under traditional covered bonds. »The counterparty: access to a type of collateral asset [collatéral] non-volatile.