The MakerDAO community has approved Coinbase’s proposal to store up to $1.6 billion USDC in its Prime Rewards Program.
On September 6th, Coinbase filed governance suggestion We are bringing 33% of MarkerDAO’s USDC holdings into the Coinbase Institutional Rewards program.
After thorough consideration by the MakerDAO Governance Forum, Coinbase’s proposal received the green light.
Coinbase Institutional Rewards (MIP81) has been approved by Maker Governance through a ratification vote.
This result prompted the Core Unit to begin onboarding 33% of PSM’s USDC to @coinbaseInstitutional Rewards Program.
🧵↓
— Maker (@MakerDAO) October 24, 2022
As a result, MakerDAO commits $1.6 billion in USDC holdings to Coinbase Prime. In exchange, Maker will earn a 1.5% reward on that deposit, approximately $24 million.
As expected, MakerDAO will always be able to mint, burn, withdraw and settle trades using USDC.
MakerDAO business development lead Jennifer Senhaji said the collaboration with Coinbase fulfills the protocol’s desire to invest collateral in short-term bonds that generate more rewards for its operations.
Senhaj added:
“The additional monthly revenue generated by this transaction will allow Maker to further our overarching mission of creating a global, trustless financial future built on decentralized rails.”
win-win for coinbase
USDC issuer Circle is a Coinbase portfolio company. As a result, MakerDAO’s approval will help the cryptocurrency exchange increase his USDC holdings and drive adoption of the stablecoin.
As of Q2 2022, Coinbase has approximately $1.7 billion in custody on behalf of its customers.
By committing to hold $1.6 billion, MakerDAO will help Coinbase maintain its position as a leading choice for USDC holders.
