In August 2022, the MakerDAO DeFi protocol agreed to lend Societe Generale Forge (SG Forge) up to $30 million. Yesterday SG Forge drew down the first $7 million DAI stablecoins as part of the loan.
MakerDAO is known for DAI, the (over)collaterilized dollar stablecoin backed by various cryptocurrencies. It was primarily backed by Ether in the past, but now pure cryptocurrencies such as wrapped Bitcoin and Ether make up around 15% of the DAI issued. Instead, the majority of DAI is issued against other stablecoins, particularly USDC, but also Paxos Dollar (PUSD) and Gemini Dollar (GUSD).
But a growing proportion of DAI is minted against real world assets, which is where SG Forge comes in. US-based Huntingdon Valley Bank drew down a $100m loan in August and September 2022. About $665 million of DAI is backed by real world assets, most of which are in a $500m bespoke liquid bond portfolio using a special purpose vehicle.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
