Société Générale and MakerDAO collaborationSociété Générale & MakerDAO – a historic collaboration where traditional banking and DeFi meet
This late September (September 30, 2021) history has been made with Société Générale’s proposal, called “Security Tokens Refinancing”, to the leading DeFi platform MakerDAO for a stablecoin DAI loan in exchange for bond tokens as collateral.

The party managing the collateral application, called SG-Forge, is a regulated subsidiary of Société Générale (SG) focused on digital assets and licensed as an investment firm under MiFID II Regulation.
The pledged tokens – OFH tokens, are characterized as covered bonds (security tokens) and shall collateralize a $ 20 million loan in Maker’s DAI stablecoin that would be mediated by a number of legal entities. Some of the main objectives listed in the application by SG-Forge are integration with one of the largest DeFi protocols and to “help to shape and promote an experiment under the French legal framework”.
“This experimentation combines traditional capital market activities with the decentralized finance (“DeFi”) emerging and growing ecosystem,” further says SG.

The legal architecture and business development of the upcoming deal are complex and surely of great interest worldwide. The potential impact of this deal goes beyond its imminent participants as it presents enticing new opportunities. Undoubtedly, this is a turning point in financial history and shall be followed closely.

For legal assistance in connection with the launch of crypto projects, do not hesitate to contact us here.

If you'd like to know why Bulgaria is an emerging Crypto Hub, read here.

Pavla Tsvetkova

Legal.Net Blog © 2021

Materials published on this blog are copyrighted. No part of them can be copied or used without the express permission of the author.
Tags: Cryptocurrency