Gide is proud to announce that it has advised Société Générale-Forge (SG-FORGE) on the global structuring of the refinancing of the covered bonds held by Société Générale in the form of Security Tokens using MakerDAO, a market-leading decentralized finance (‘DeFi’) protocol.
The refinancing implied a loan by SG-FORGE to its mother company Société Générale to refinance the Security Tokens held by the bank and issued natively on the Ethereum public blockchain. The Security Tokens were transferred to SG-FORGE as collateral to secure the loan, and SG-FORGE funded this loan in the crypto market by borrowing DAI stablecoins from MakerDAO. Same Security Tokens were pledged to the benefit of the MakerDAO protocol pursuant to articles L. 211-20 of the French Monetary and Financial Code.
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 improvement of financial terms, settlement and counterparty risks.
Gide’s team comprised Hubert du Vignaux and Bastien Raisse, partner and counsel of the Debt Capital Markets team, Clément Vandevooghel and Agathe Llorens, counsel and associate of the Securitisation team, together with Matthieu Lucchesi, counsel of Gide 255, the Gide's Innovation & FinTech team.