News

MakerDAO Will Vote On $100 Million Loan With Florida Commercial Bank

Key Points:

  • MakerDAO, a decentralized lending platform for cryptocurrencies, is holding a vote on a fresh proposal that would integrate a second commercial bank into its ecosystem, deepening the link between decentralized finance (DeFi) and conventional finance.
  • MakerDAO receives income via yields, fees for minting DAI, and fees for running the vault. As of January 5, the benchmark 30-day average secured overnight borrowing rate was 4.15%.
MakerDAO, a decentralized lending platform for cryptocurrencies, is holding a vote on a fresh proposal that would integrate a second commercial bank into its ecosystem, deepening the link between decentralized finance (DeFi) and conventional finance.

According to MakerDAO’s governance forum, Cogent Bank, a commercial bank with headquarters in Florida, is putting out a proposal to contribute $100 million in loans to MakerDAO’s RWA Master Participation Trust.

The proposal, which is a part of MakerDAO’s monthly governance cycle, calls for applying the same terms and conditions to Pennsylvania-based Huntingdon Valley Bank (HVB), which signed a collateral integration agreement with the cryptocurrency company in July 2022 and now has the ability to borrow money using DeFi by using its assets as collateral.

Under the same circumstances, MakerDAO would link its Dai DAI stablecoin to the funds available at Cogent Bank through its trust arm. The trust entity would be in charge of overseeing the cooperation with the bank as well as assuring DAI minting and destruction from the vault.

With loans granted mostly on a fixed-rate basis, the DeFi protocol would gain exposure to the credit market in at least eight sectors, including commercial real estate, industrial, life insurance, consumer, and public financing.

MakerDAO receives income via yields, fees for minting DAI, and fees for running the vault. As of January 5, the benchmark 30-day average secured overnight borrowing rate was 4.15%.

Pinnacle Bank was the name of Cogent Bank before it was acquired in 2018. The Florida bank is protected by the Federal Deposit Insurance Corporation and currently manages $1.3 billion in assets. Loans originated in the first three quarters of 2022 totaled $602 million, whereas they totaled $873 million in 2021, according to the business.

MakerDAO revealed a governance framework for its first partnership with a conventional bank, Huntingdon Valley Bank, in an effort to survive the crypto winter of 2022. Depending on the outcomes of its integration with HVB, the DeFi protocol stated plans to onboard additional banks at that time.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

22 minutes ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

28 minutes ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

35 minutes ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

2 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

2 hours ago

Cosmos Developer Interchain Foundation Sold 3000 ETH Today

Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…

3 hours ago

This website uses cookies.