French bank Société Générale asks  million loan from Maker DAO

French bank Société Générale asks $30 million loan from Maker DAO

France’s third largest bank Société Générale plans to borrow 30 million DAI from Maker DAO. This application was made by its subsidiary company SG Forge. The company is offering its own OFH token worth 40 million euros as collateral.

In a vote of 83.16% of community members supported the idea. Which means that very soon we will see the first DeFi loan for a traditional big bank.

A few words about the OFH bank token, which will be the collateral for the loan. This is a Société corporate bond, which the company launched on the Ethereum blockchain in 2019. The structure of such securities has been rated AAA (very high reliability) by Moodys.

Why the deal is important

This collaboration has two important points. First, the Maker protocol is willing to accept the OFH token as collateral, which is quite unusual in crypto circles. Typically, credit protocols require bitcoins or wrapped ether to be deposited.

The second point is that Maker is trying on the role of a central bank. Prior to the transaction, there was no $30 million in DAI Stablecoin. Like the ECB, Maker creates new money and makes money from it.

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