MakerDAO approves custody of $1.6 billion USDC via Coinbase Prime

A Vault In A Bank

The MakerDAO community has approved a proposal that will see the crypto protocol custody as much as $1.6 billion USD Coin (USDC) with cryptocurrency exchange Coinbase.

The USDC will be held via Coinbase’s institutional custody platform Coinbase Prime, and offer a yield of 1.5%, with custodied funds accessible round-the-clock to the DAO Peg Stability Module as it looks to help push the overall growth of the stablecoin and DeFi ecosystems.

According to MakerDAO, 75% of the community voted to ratify the Coinbase Institutional Rewards proposal, paving the way for the move.

Coinbase Institutional Rewards (MIP81) has been approved by Maker Governance through a Ratification Poll.

🗳 https://t.co/7Hk6gqKTsO

This outcome enables Core Units to initiate 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

Growing USDC’s institutional reach

Coinbase believes the proposal will also help grow the USDC under custody, expanding the stablecoin’s institutional reach and rewards.

The crypto exchange, among the consortium that backed the launch of USDC and works towards its growth, believes the USD-pegged stablecoin is on track to becoming a major player in a new financial paradigm.

Jennifer Senhaji, the head of growth and business development at MakerDAO, said in a statement:

“This proposed collaboration with Coinbase follows an approved signal of intent by the MakerDAO community to increasingly invest Maker’s collateral into short-term bonds. It was agreed that any collateral deployed should meet the criteria of offering safety, cost structure, and flexibility. Coinbase is uniquely situated to offer a USDC Rewards Program that fulfils these criteria.”

The partnership will also enable MakerDAO, the issuer of DAI, advance its mission of promoting global crypto adoption via decentralised finance.

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