Your father is probably confusing the process of making margarine from saturated fats with the process of hydrogenating fats, which used to be the primary way we got saturated fats for making margarine. The two are completely separate though.
Margarine is made by emulsifying a mix of saturated and unsaturated fats with a small amount of water in what amounts to a specialized blender. Originally margarine was made from animal fat. Later artificial saturated fats were produced by hydrogenating vegetable oil. Now palm oil is used which doesn't require hydrogenation but which does have issues of its own. Clarified butter could probably even be used to make margarine although it would be kind of pointless.
So what you are doing is not that far off from how margarine has been made since the switch from hydrogenated vegetable oil to palm oil. You are just using a blend of coconut and olive oil in place of the palm oil and vegetable oil used in most commercial margarine and you are using garlic as the source of moisture instead of just water. Your general purpose blender also probably isn't as good at forming the emulsion as dedicated margarine blenders.
Ultimately, you are making margarine or something very similar, but it is not hydrogenated any more than modern commercial margarine is. It's really not that different from other forms of emulsion like mayonnaise, vinaigrette, or emulsified pasta sauces like carbonara, although some of those also include chemical emulsifiers like egg yolk or mustard to help hold the emulsion together. Margarine relies on the saturated fat to physically hold the emulsion instead.