MakerDAO Partners with Coinbase to Store $1.6 Billion USDC

Coinbase, the largest US cryptocurrency exchange, has announced a partnership with MakerDAO Governance. The partnership was made possible by a proposal passed by his MakerDAO governance to store his $1.6 billion in USDC stablecoins using Coinbase Prime.

MakerDAO partners with Coinbase

This is the first time Coinbase has expanded the USDC rewards program to institutional investors. The exchange says MakerDAO will hold Coinbase Prime funds and he will earn 1.5% interest on their holdings.

This proposal passed with 75% of the votes and is worth 109,944 MKR tokens. MakerDAO is currently the largest holder of USDC. USDC is one of the largest stablecoins and has gained market share over the years.

Jennifer Senhaji, Head of Growth and Business Development at MakerDAO, said the monthly revenue generated through this transaction will help Maker advance its overarching mission of supporting the future of decentralized finance. .

However, this partnership would undermine the decentralized nature of MakerDAO’s stablecoin known as DAI. Stablecoins will become collateralized by centralized stablecoins. The USDC stablecoin accounts for one-third of the national treasury and underpins the stability of the DAI peg.

Holding USDC is part of Maker’s “End Game Plan”. The company plans to increase the collateral backing DAI by diversifying into real-world assets and short-term bonds. The long-term goal of this plan is to convert DAI into a free-floating asset that is not pegged to US dollars.

coinbase stock tank

The cryptocurrency market has fallen significantly over the past year. Amid the bearish trend, Coinbase stocks plunged in line with technology stocks and global cryptocurrency markets.

Over the past day, COIN registered a massive 7% gain, trading at $71.38 at the time of writing. COIN tends to go hand in hand with the cryptocurrency market, recording a flat trend over the past four months. COIN has fallen about 80% since hitting a record high in November last year.

Meanwhile, MakerDAO’s native token, MKR, is up 1.9% over the past 24 hours, trading at $936 at the time of writing. MKR has plunged 85% since surpassing his all-time high of $6,000 last May. MKR has also fallen 14% over the past two weeks.

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