Société Générale to refinance its bonds with DAI stablecoin

Société Générale to refinance its bonds with DAI stablecoin

We’re so thrilled to report a major event in crypto finance coming from France, D.Center’s home country and a very conservative place when it comes to banks.

There’s indeed a persisting problem of banks refusing crypto companies their services, but today a new perspective appeared.

Société Générale, the third biggest French bank serving 29M clients, proposed to submit its security tokens as a collateral for a loan of the DAI stablecoin. As precised in their post on the MakerDAO forum, €40M of 0% OFH tokens backed by home loans (OFH stands for obligation de financement de l’habitat) were issued on Ethereum last year and will mature in May 2025. They would be used to collaterize a $20M loan of DAI.

If accepted by the MakerDAO, this would set an important precedent in bridging the traditional #finance and the DeFi. It could also become a reference case for the lawyers working with crypto: six separate entities and a lot of legal creativity would be needed to make the process compliant with the French law.

As to Societe Generale, they are now well set on the crypto path: this proposal comes two years after the bank made the news by issuing a €100M bonds on the Ethereum blockchain.