Société Générale uses a $7 million credit line from MakerDAO

The funds were borrowed in DAI stablecoins against mortgage bonds

13.01.2023 - 10:35

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What’s new? Analyst Colin Wu has reported that a French financial conglomerate and one of Europe’s largest banks, Société Générale, borrowed 7 million algorithmic stablecoins DAI from the MakerDAO project on January 12, backed by mortgage bonds. Wu posted this information with reference to the transaction on his Twitter. In total, the bank’s line of credit reaches $30 million in DAI.

Source: Twitter.comMakerDAO is a protocol based on the Ethereum blockchain. Maker, a decentralized trading platform, provides a service for lending and borrowing cryptocurrencies. As of January 13, its stablecoin DAI ranks 18th in the cryptocurrency ranking with a market capitalization of $5,08 billion. The native token MKR ranks 63rd with a figure of $589,6 million and is trading at $653, having gained 3,65% in 24 hours, according to Binance.

What else is known? The withdrawal of $7 million from the vault was the bank’s first transaction since the application was approved. In August 2022, MakerDAO added bank subsidiary Societe Generale-Forge (SG-Forge), which specializes in digital assets, to its vault with a credit limit of $30 million in DAI after a unanimous vote. The vault is backed by 40 million EUR in bonds in the form of OFH tokens — tokenized securities issued on the Ethereum platform and backed primarily by home loans with Moody’s Aaa rankings — making the loans overcollateralized.

Transaction data

Société Générale launched custodial services for crypto fund managers in September 2022. The conglomerate is also involved in the process of testing the digital euro jointly with the European Central Bank.

In October 2022, MakerDAO began considering a plan to make DAI more decentralized. It was proposed by platform founder Rune Christensen after sanctions were imposed on crypto mixer Tornado Cash to depeg DAI from large centralized assets that could be frozen or confiscated at the request of regulators.

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