Societe Generale Withdraws $7M in DAI From MakerDAO Vault

In August, MakerDAO added the bank’s digital asset-focused subsidiary, Societe Generale–Forge, to its vaults with a credit limit of $30 million in DAI after a unanimous vote

article-image

Hadrian/Shutterstock.com modified by Blockworks

share

French banking giant Societe Generale has used its MakerDAO vault for the first time to withdraw $7 million worth of MakerDAO’s stablecoin DAI

In August 2022, MakerDAO added the bank’s digital asset-focused subsidiary, Societe Generale–Forge (SG-Forge), to its vaults with a credit limit of $30 million in DAI following a unanimous vote. The vault is backed by 40 million euros in bonds in the form of ‘OFH tokens’ — tokenized securities issued on Ethereum and backed primarily by home loans with Moody’s Aaa rankings — making the loans overcollateralized. 

It’s the culmination of a process started in October 2021 when SG-Forge laid the groundwork to convert borrowed DAI into US dollars to be loaned to parent bank Societe Generale in exchange for the OFH tokens — essentially a refinancing operation — in a historic use of DeFi infrastructure on public Ethereum. 

What sets this apart from other MakerDAO vaults?

Unlike DAI’s other backing assets, the OFH tokens have no liquid market, so the liquidation procedure — in the event the loan becomes undercollateralized — is more manual than generally applies to MakerDAO’s other collateral vaults. 

MakerDAO delegate and crypto researcher Mika Honkasalo told Blockworks the process for SG-Forge to make its first withdrawal has been slow, but he expects the bank to withdraw its maximum $30 million in DAI “soon.”

“I’m not actually sure why it took them so long to use the vault, except that my experience with these real-world asset things is that everything always takes a long time,” Honkasalo added. 

Societe Generale, a global banking behemoth with 138,000 employees across 62 countries, is the first to take on this initiative with Maker. The plans align with MakerDAO’s aims to increase the collateral base of its DAI stablecoin and diversify away from a reliance on volatile crypto assets — namely ether — and the centralized stablecoin USDC.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

4.png

Research

This months PPGC covered four main areas. Firstly, debriefing the progress and status of the mainnet implementation of the Ahmedabad hard fork. Secondly, a retrospective on the testnet phase of the Ahemdabad Hard Fork. Thirdly, an update on PIP-36 which involves replaying failed state syncs. Lastly, PIP-47 which pushes upgrades to the Polygon Protocol Council.

article-image

Institutions to test out the settlement of “digital assets and currencies” on a network that annually carries more than 5 billion financial messages

article-image

After Bitwise’s XRP ETF filing this week, one industry watcher notes: “Politics will determine whether this happens soon or in a few years”

article-image

Plus, a look back at some of the SEC’s biggest enforcement moves under Gurbir Grewal

article-image

The forward-looking financial system is being championed by several contributors to India’s UPI digital money system

article-image

Multiple teams are pursuing integration cross-chain and off-chain

article-image

An SEC spokesperson told Blockworks the Ripple judgment clashes with Supreme Court precedent and securities laws