The biggest cryptocurrency alternate within the US, Coinbase, has introduced a partnership with MakerDAO governance. This partnership was enabled by a proposal handed by the MakerDAO governance to custody $1.6 billion within the USDC stablecoin with Coinbase Prime.

MakerDAO companions with Coinbase

It is going to be the primary time Coinbase will lengthen the USDC rewards program to an institutional shopper. The alternate has mentioned that MakerDAO will custody the funds on Coinbase Prime, and it’ll earn a 1.5% curiosity on the holdings.

This proposal was handed by 75% of the votes, equating to 109,944 MKR tokens. MakerDAO is now the biggest holder of USDC. USDC is among the largest stablecoins, and over time, it has elevated its market share.

The expansion and enterprise improvement head at MakerDAO, Jennifer Senhaji, mentioned that the month-to-month revenues generated via this deal would assist Maker in advancing its overarching mission to assist a decentralized monetary future.

Nevertheless, the partnership will dent the decentralized nature of MakerDAO’s stablecoin referred to as DAI. The stablecoin will now be collateralized by a centralized stablecoin. The USDC stablecoin will comprise a 3rd of the treasury, supporting the steadiness of the DAI peg.

Holding USDC is a part of the “Endgame Plan” by Maker. The corporate plans to extend the collateral backing DAI by diversifying into real-world belongings and short-term bonds. The long-term goal of this plan is to rework DAI right into a free-floating asset that’s not pegged to USD.

Coinbase inventory tanks

The cryptocurrency market has dropped considerably over the previous yr. Amid the bearish pattern, Coinbase inventory has plunged in tandem with tech shares and the worldwide cryptocurrency market.

Over the previous day, COIN registered a notable achieve of seven%, buying and selling at $71.38 on the time of writing. COIN tends to carry out in tandem with the cryptocurrency markets, and over the previous 4 months, it has registered a sideways pattern. COIN has dropped by round 80% since creating an all-time excessive in November final yr.

Alternatively, MKR, the native token of MakerDAO, has gained 1.9% over the previous 24 hours and was buying and selling at $936 on the time of writing. MKR has plunged by 85% since hitting an all-time excessive of over $6,000 in Might final yr. MKR can also be down 14% over the previous two weeks.

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