The MakerDAO neighborhood has authorized a proposal by Coinbase to custody as much as $1.6 billion USDC with the Prime reward program.
Earlier on Sept. 6, Coinbase submitted a governance proposal in search of to onboard 33% of MarkerDAO’s USDC holdings to the Coinbase Institutional Rewards program.
After due consideration by the MakerDAO governance discussion board, Coinbase’s proposal has obtained the inexperienced gentle.
Coinbase Institutional Rewards (MIP81) has been authorized by Maker Governance via a Ratification Ballot.
This consequence permits Core Items to provoke the onboarding of 33% of the PSM’s USDC to @Coinbase‘s Institutional Rewards program.
🧵↓
— Maker (@MakerDAO) October 24, 2022
Consequently, MakerDAO will commit $1.6 billion of its USDC holdings to Coinbase Prime. In alternate, Maker will earn a 1.5% reward for its deposits, roughly $24 million.
Expectedly, MakerDAO will be capable to mint, burn, withdraw and settle transactions utilizing its USDC at any time.
MakerDAO Enterprise Dev. lead Jennifer Senhaji stated that the collaboration with Coinbase satisfies the protocol’s longing to speculate its collateral into short-term bonds that may generate extra rewards for its operation.
Senhaji added:
“The extra month-to-month income generated via this deal permits Maker to additional advance its overarching mission to create a worldwide, trustless monetary future constructed on decentralized rails.”
Win-win for Coinbase
USDC issuer Circle, is a portfolio firm of Coinbase. Consequently, MakerDAO’s approval will assist see the crypto alternate enhance its USDC holdings whereas selling the adoption of its stablecoin.
As of Q2 2022, Coinbase held custody of roughly $1.7 billion on behalf of its buyer.
By committing $1.6 billion of its holdings, MakerDAO will assist Coinbase retain its place because the main selection for USDC holders.
