MakerDAO to invest $500 million in U.S. securities

The community of one of the oldest DeFi projects, MakerDAO, approved a proposal to move stablecoins from reserves totaling $500 million into short-term U.S. Treasuries and corporate bonds.

Maker Governance executed the first DAO balance sheet investment in high-quality bonds.

MIP65: Monetalis Clydesdale will activate a Maker Vault for the purpose of investing PSM’s USDC in liquid bond strategies with a debt ceiling of 500 million DAI. pic.twitter.com/LlpBUkYXxE

— Maker (@MakerDAO) October 6, 2022

The decentralized autonomous organization (DAO) gave the green light a test transaction of $1 million. The remainder of the funds will be deployed into securities in the coming days.

Participants MakerDAO explained the initiative as an effort to strengthen the project’s balance sheet with liquid and low-risk traditional assets.

To implement the plan, the project partnered with Monetalis, a DeFi-focused consulting firm.

80% of the allocated amount will be placed in short-term U.S. Treasuries, while the remaining 20% will be invested in corporate bonds. The $500 million will be split evenly between asset managers Sygnum Bank and Baillie Gifford with Monetalis’ involvement.

Please note that the Monetalis Clydesdale allocation of 500 million DAI is being split equally between RWA007-A for Bank Sygnum (onboarding in this spell) and RWA007-B for Baillie Gifford (to be onboarded at a later date).

4/

— Maker (@MakerDAO) October 5, 2022

Earlier, Rune Christensen proposed to decouple the decentralized stablecoin DAI from the dollar, expressing concerns about the project’s future.

In early September, Coinbase, the largest U.S. cryptocurrency exchange, proposed that MakerDAO place one-third of USDC in the institutional custodial service Coinbase Prime at 1.5% per year.

Gemini chief Tyler Winklevoss put to the MakerDAO community for consideration a proposal to pay an annual interest rate of 1.25% on deposits in the stablecoin GUSD.

Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.