MakerDAO community votes to approve custody of $1.6B USDC with Coinbase

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Institutional prime broker platform for crypto assets Coinbase Prime announced on Oct 24th that it had entered into a partnership with MakerDAO โ€” the largest single holder of USDC โ€” to become a custodian of $1.6 billion worth of the stablecoin.

The MakerDAO community voted to approve this custodianship which will allow its community to earn a 1.5% reward on its USDC while holding funds with a leading institutional custodian.

According to Coinbase Prime, this move will not only accrue tangible benefits to the MakerDAO community but also exemplifies the platformโ€™s efforts to grow the stablecoin ecosystem. Coinbase expressed certainty that stablecoins will play a key role in creating an open, more efficient, and more equitable financial system that bridges the gap between the crypto and fiat world.

Jennifer Senhaji, in charge of Growth & Business Development at MakerDAO, said:

โ€œThe additional monthly revenue generated through this deal enables Maker to further advance its overarching mission to create a global, trustless financial future built on decentralized rails.โ€

Related: USDC adoption is lagging outside of the United States: Coinbase

Coinbase has a long history of supporting MakerDAO, as it provided liquidity to the protocol and helped it with its initial listing of DAI.

On Oct 14, Cointelegraph reported that MakerDAOโ€™s revenue had plummeted in the third quarter of 2022, which was caused by a fall in loan demand and few liquidations, while expenses remained high. Twitter account holder Johnny_TVL, a Messari analyst and co-author of โ€œThe State of Maker Q3 2022,โ€ shared in a series of tweets that MakerDAO saw its revenue plunge to just over $4 million in Q3, down 86% from the previous quarter.