Key Points:
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
Upbit's planned listing includes DRIFT trading pairs for the Korean Won, Bitcoin, and Tether.
Bitcoin Spot ETF Inflows reach $1.376 billion on November 7, with BlackRock ETF IBIT seeing…
Detroit will become the largest U.S. city to accept crypto payments for taxes and fees…
Trump's transition team is considering Robinhood Chief Legal Officer Dan Gallagher for SEC chair, with…
Schneider Electric faced a Hellcat Ransomware attack demanding $125,000 in Monero, threatening to release 40GB…
Ethereum Foundation Report 2024 reveals asset reserves of $970.2M, with $788.7M in crypto (99.45% ETH).…
This website uses cookies.