MakerDAO has authorized the initiation of RWA vault specified for Coinbase Custody and approved the transaction of $500M worth of USDC.
MakerDAO, a prominent protocol for crypto lending, has recently authorized the initiation of a real-world asset (RWA) vault specified for Coinbase Custody. The platform has additionally approved the transaction of nearly $500M worth of USDC tokens, as per a vote that was accomplished on Thursday.
MakerDAO Allows Transaction of 500M USDC to Coinbase Custody
The United States-based crypto exchange company’s custodial branch will recompense almost 2.6% per annum profit on deposits, as disclosed by a related post published on the governance forum of Maker. No fees will be charged by Coinbase over the USDC tokens’ custody or taking part in the rewards project. The proposal prohibits Coinbase Custody from reinvesting, lending, or using the assets existing in the account in other ways.
The crypto exchange must keep the respective assets in cold wallets, as favoured by the Maker community in a corresponding vote. The platform will be capable of redeeming funds from the respective vault within twenty-four hours. The limit for the insurance of the funds kept in the cold wallets is nearly $500 million. Maker is categorized among the biggest decentralized protocols for crypto lending. A decentralized autonomous organization (DAO) is responsible for controlling the protocol.
Maker Is Also Responsible for the Issuance of $5B Worth of DAI Tokens
In addition to this, the protocol is also responsible for issuing the $5B DAI stablecoin tokens. The respective tokens are supported by assets worth up to $7 billion stored in the reserves of Maker. The exclusive development is included in the procedure of the implementation of a former decision to transact approximately $1.6B worth of USDC tokens to the crypto exchange Coinbase for earning yield.
Back in 2022’s September, Coinbase filed the proposal entitled “MIP81: Coinbase USDC Institutional Rewards.” The respective proposal was focused on onboarding the USDC tokens of PSM to Coinbase Prime to take part in the USDC Institutional Rewards project of Coinbase. Keeping that in view, the legal Assessment of the Strategic Finance Core made a declaration. As per that, the allocation of nearly 500M USDC tokens from PSM to the Institutional Rewards project run by Coinbase is to be conducted in line with some parameters.
MakerDAO has been pursuing a plan for the diversification of its reserves along with increasing its revenues via the investment in yield-generating conventional financial assets. The respective assets take into account the United States-based Treasury bill as well as the loans given to the banking institutions.