A subsidiary of French bank SG Forge, used a line of credit approved by the decentralized community last July to withdraw $7 million in DAI tokens.
SG Forge, a digital services provider and subsidiary of Societe Generale, borrowed $7 million worth of DAI stabelcoins from the virtual currency community MakerDAO. According to on-chain data, the French bank’s digital subsidiary used a total of $30 million in lines of credit opened by the decentralized community on January 12.
MakerDAO is a DeFi platform operated by a decentralized autonomous organization (DAO) composed of Maker token holders. According to the analytics platform DeFi Llama, MakerDAO at $6.64 billion is the second largest TVL (total locked – total value of funds contributed to the project by users) on the list of decentralized platforms.
MakerDAO issues DAI stable coins pegged to the USD exchange rate. The total market capitalization of its assets is US$5 billion, behind USDT, USDC, and BUSD.
Last July, community members voted to approve Société Générale Forge’s line of credit. The company has pledged €40 million worth of OFH tokens, Société Générale’s corporate securities backed by mortgage loans, which will be tokenized on the Ethereum blockchain in 2019. AAA rating (very high confidence) from Fitch.
This is not the first line of credit opened by the decentralized community; in July 2022, MakerDAO also approved a $100 million stablcoin DAI loan to US-based Huntingdon Valley Bank. All results could not be downloaded.