Major French Bank Looks Forward To Supporting $DAI Stable Crypto Through Bond Financing Worth 20 Million USD

MakerDAO, the decentralised autonomous organisation behind the $DAI stablecoin tied to the US dollar, has received a historic proposal from Société Générale-Forge (SG-Forge), a subsidiary of the (SG).

Société Générale is a European financial institution with more than 130,000 employees in around 60 countries, making it the world’s biggest bank. According to the corporation, it plans to incorporate tokenized, AAA-rated Euro-denominated bonds into the .

Diversification As SG’s Primary Aim

According to , this first experiment at the intersection of regulated and open source initiatives is designed to refinance a that was published on the Ethereum public blockchain last year.

While MakerDAO describes this as an experiment, it is very much in line with the company’s goals of increasing the collateral base of its $DAI stablecoin and diversifying away from reliance on volatile crypto assets and other such as $USDC, which currently backs roughly half of the $DAI in circulation.

will borrow up to 20 million $DAI for six to nine months, after which it will convert the money to US dollars and loan it to its parent company, SG, in exchange for the usage of the .

The OFH Tokens are tokenized securities with a nominal value of €40 million which are issued on the Ethereum blockchain. They are also backed by mortgages supplied by a credit institution affiliated with Société Générale.

Much More Process Yet To Be Done

As the is a decentralised autonomous organisation (DAO), the proposal from the French bank requires a vote by the community to choose a Maker Representative who will be authorised to execute the legal documents required for the transaction to take place.

Unlike other assets backing the creation of the $DAI stablecoin, OFH Tokens still do not have a liquid market.

While emphasising that this is only the beginning, SG-Forge notes in its proposal that , and that future growth in OTC desks and other trading platforms will allow for more automated liquidation alternatives.

The idea brought by the proposal was overwhelmingly supported by the DAO Maker Community.

In the meantime, The DAO Maker Foundation is expected to be , at which point the Maker Community will have full control over the DAO.

Yet, before the proposal can be implemented, it will be subjected to much research and discussion, but there is clearly a feeling of urgency behind the attempt to make this experiment a success.

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