Coinbase to Custody MakerDAO’s USDC Funds Worth $1.6B

• The USDC is a third of the treasury supporting Maker’s Peg Stability Module.
• The DAO will receive up to 1.5% rewards on the assets.

After being presented by Coinbase Institutional on September 6, the proposal passed with 75% approval on Monday afternoon. The USDC is a third of the treasury supporting Maker’s Peg Stability Module, which lets customers trade collateral for DAI, Maker’s dollar-pegged stablecoin.

MarkerDAO’s USD Coin (USDC) treasury worth $1.6B will be held in Coinbase’s institutional-grade custody, and the DAO will receive up to 1.5% rewards on the assets. According to the suggestion, Maker will not pay a custody charge, and once the trial period ends at the end of the year, the community will vote on whether to retain its funds in custody with Coinbase.

Benefit For All Parties Involved

However, according to a Twitter thread published by Maker, MakerDAO will need to establish a legal corporation in order to join Coinbase’s institutional rewards programme. According to a blog post, Coinbase already holds $1.7 billion worth of USDC on behalf of users, and this transfer will almost double that amount.

Jennifer Senhaji, the director of growth and business development at MakerDAO stated:

 “The additional monthly revenue generated through this deal enables Maker to further advance its overarching mission to create a global, trustless financial future built on decentralised rails.”

MKR, the currency used for voting in MakerDAO’s governance, was trading at $926.20 on Monday afternoon, down 3% from the previous day and down 16% from the previous week, as monitored by CoinGecko. Moreover, Maker’s DAI stablecoin, as of this writing, has a market size of $5.8 billion, or around 4% of the total market cap of stablecoins.

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