Societe Generale Withdraws $7 Million in DAI From The MakerDAO Vault

After a unanimous vote, MakerDAO added the bank's digital asset-focused subsidiary, Societe Generale-Forge, to its vaults in August, with a credit limit of $30 million in DAI. French banking giant Societe Generale has used its MakerDAO vault for the first time to withdraw $7 million worth of MakerDAO's stablecoin DAI.

Following a majority vote, MakerDAO added the bank's digital asset-focused subsidiary, Societe Generale-Forge (SG-Forge), to its vaults in August 2022, with a credit limit of $30 million in DAI. The vault is secured by 40 million euros in bonds in the form of 'OFH tokens,' which are tokenized securities issued on Ethereum and backed mostly by Moody's Aaa-rated house loans, making the loans overcollateralized.

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