A USDC one.six billion custody proposal from issuer DAI MakerDAO launched by the Coinbase exchange in September is about to be “closed”.
MakerDAO, issuer of the DAI stablecoin, is incredibly near to offer integrated with Coinbase Prime and transferred about USDC one.six billion into custody and acquired the over award.
@CoinbaseInsto presented MIP81: Coinbase USDC Institutional Rewards
This MIP proposes to include PSM’s ~ one.six billion USDC into Coinbase Prime to present up to one.five% APY in USDC to these MakerDAO holdings.
– Maker (@MakerDAO) October 3, 2022
Until the time of publication, out 88% of the votes were in favor Producer Improvement Proposal (MIP) 81, with the consent of the a16z investment fund. But it will take one more three days to get the last success.
We are thrilled to help @coinbaseUSDC’s proposal for institutional awards with @MakerDAOwhich has quite a few optimistic implications for the two events and represents the start off of a prospective new partnership for @MakerDAO. https://t.co/g9QedlpmuG pic.twitter.com/a56mYE4aGR
– Porter Smith (@_portersmith) 21 October 2022
If the system is productive, MakerDAO will use one.six billion USDC to participate in Coinbase’s institutional rewards plan, Maker Governance will have accessibility to close to-immediate (<6 minutes) minting, burning, payment and withdrawal functions on Coinbase Prime . In return, Coinbase is responsible for calculating the monthly reward and paying it on the fifth business day. Maker does not pay custody fees to Coinbase.
MakerDAO confirms:
“According to MIP81’s rewards program, implementing this proposal will bring approximately USDC 15 million in annual revenue for MakerDAO.”
Coinbase is one of the USDC co-issuers, along with Circle. The transfer between Coinbase and MakerDAO is in line with a USDC 4 billion allocation plan to diversify treasury and generate additional profits for the institution. In early October, Maker already invest $ 500 million in short-term promissory notes and IG corporate bonds.
This is claimed by Oppenheimer analyst Owen Lau The move will gain Coinbase’s support for similar proposals, while increasing the organization’s revenue share. Oppenheimer sees Coinbase shares soon reach its $ 107 target. But COIN was trading at around USD 65.45 per share in yesterday’s trading session.
Also this week, Coinbase will do it no fees for USDC transactions with any fiat currency to promote the adoption of stablecoins globally. JPMorgan analysts recently estimated that Coinbase’s joint venture with issuer USDC alone could contribute around $ 700 million in revenue for the company next year.
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