The MakerDAO neighborhood has authorized a proposal by Coinbase to custody up to $1.6 billion USDC with the High reward program.
Earlier on Sept. 6, Coinbase submitted a governance proposal searching to onboard 33% of MarkerDAO’s USDC holdings to the Coinbase Institutional Rewards program.
After due consideration by the MakerDAO governance dialogue board, Coinbase’s proposal has obtained the fairway light.
Coinbase Institutional Rewards (MIP81) has been authorized by Maker Governance through a Ratification Poll.
🗳 https://t.co/7Hk6gqKTsO
This permits Core Items to launch the onboarding of 33% of the PSM’s USDC to @Coinbase‘s Institutional Rewards program.
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1/ pic.twitter.com/aOMdGev1QG
— Maker (@MakerDAO) October 24, 2022
In consequence, MakerDAO will commit $1.6 billion of its USDC holdings to Coinbase High. In exchange, Maker will accomplish a 1.5% reward for its deposits, roughly $24 million.
Expectedly, MakerDAO will have the flexibility to mint, burn, withdraw and pick transactions with the use of its USDC at any time.
MakerDAO Industry Dev. lead Jennifer Senhaji said that the collaboration with Coinbase satisfies the protocol’s longing to make investments in its collateral into short-term bonds that will generate extra rewards for its operation.
Senhaji added:
“The extra month-to-month income generated through this deal permits Maker to extra reach its overarching mission to web a world, trustless monetary future built on decentralized rails.”
Accumulate-maintain shut for Coinbase
USDC issuer Circle is a portfolio company of Coinbase. In consequence, MakerDAO’s approval will assist see the crypto exchange enhance its USDC holdings whereas promoting 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 to maintain its impartiality as the main change for USDC holders.
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