Paris – January 17th, 2023 – Societe Generale–FORGE (SG-FORGE) has granted a loan to its mother company Societe Generale to refinance covered bonds held by the bank in the form of Security Tokens issued natively on the Ethereum public blockchain[1] (the OFH Tokens). SG-FORGE funded this loan in the crypto market by borrowing DAI stablecoins from MakerDAO, a market-leading decentralized finance (‘DeFi’) protocol. The OFH Tokens were used as loan collateral and pledged by SG-FORGE to the benefit of the MakerDAO protocol.

SG-FORGE has been able to enter into contractual agreements with the DAO[2] using the voting process of the protocol. This financial, legal, and technological innovation implied different proposals and governance votes from the DAO community, notably:

  • A MakerDAO Initial Collateral Application made in September 2021[3]
  • A MakerDAO Governance Poll[4] and Executive Vote[5] to accept the proposed OFH Tokens as collateral[6] for the transaction and elect a Maker Representative for executing the legal documentation and administrative tasks on behalf of the DAO
  • On August 2nd 2022 the MakerDAO community approved a DAI stablecoins credit line to SG-FORGE

The overall transaction is fully valid and enforceable under French regulatory and legal framework and has been performed in full compliance with banking standards. The OFH Tokens (FR0013510518) were pledged to the benefit of the MakerDAO protocol pursuant to articles L. 211-20 of the French Monetary and Financial Code.

SG-FORGE acted as Registrar and Pledgor of the OFH Tokens and borrower of the DAI stablecoins.

DIIS GROUP acted as Maker Representative and Security agent of the pledge pursuant to article 2488-6 and seq. of the French Civil Code to the benefit of MakerDAO community.

Sygnum Bank acted as Exchange agent to SG-Forge.

Gide Loyrette Nouel acted as Legal advisor to SG-Forge.

This experiment opens the way to on-chain refinancing markets serving as an example of how real money asset owners can leverage decentralized finance to create new avenues for borrowing, with potentially significant improvements of financial terms, settlement and counterparty risks.


About Societe Generale–FORGE

Societe Generale–FORGE, a fully integrated subsidiary of Societe Generale group’s, licensed as an investment firm and authorized to perform MiFID2 investment services under the supervision of the Prudential Supervision and Resolution Authority (Autorité de contrôle prudentiel et de résolution), and under the control of the Financial Markets Authority (Autorité des Marchés Financiers – AMF) and registered as PSAN (“Prestataire de Services sur Actifs Numériques” / Digital Asset Service Provider) by the AMF, has built an open, secure and institutional-grade framework for digital asset operations, underpinned by full banking level safety and regulatory compliance.

Societe Generale–FORGE provides issuers and investors end-to-end services to issue, invest and manage digital-native Security Tokens registered on public blockchains.

Societe Generale–FORGE’s Security Tokens comply with the CAST[7] open-source interoperability and securitisation framework.

For more information, visit and

About MakerDAO

MakerDAO is the decentralized autonomous organization (DAO) that powers the longest-standing DeFi lending protocol and enables the creation of DAI, the original decentralized stablecoin.

Governance of MakerDAO is completely decentralized, with proposals tabled and voted on by the Maker Community, comprising people from all over the world. Utilizing an embedded governance mechanism, the decentralized and self-sustaining Maker Community holds sole authority to enact changes to the Maker Protocol through on-chain voting, using the native governance token, MKR.

For more information about MakerDAO, visit[8], its community portal, official forum[9], and Twitter[10].




[2] Decentralized Autonomous Organization





[7] White Paper of the CAST (Compliant Architecture for Security Tokens) Framework in open access: