MakerDAO approves Coinbase Prime’s proposal of holding $1.6 billion worth of USDC in its custody
|- MakerDAO’s community voted to pass Coinbase’s proposal this Monday.
- This custody will allow MakerDAO to earn a reward of 1.5% on all the USDC Coinbase Prime holds in its custody.
- Despite a positive market today, MKR’s price continued to remain at a low.
Coinbase, one of the world’s biggest cryptocurrency exchanges, is partnering up with MakerDAO, one of DeFi’s biggest players. This partnership is expected to bring profit to both organizations but is currently not reflecting a similar impact on MKR’s price, which continues to drop gradually.
Coinbase X MakerDAO
In an announcement, Coinbase laid out the new USDC institutional rewards program on October 24. In a bid to launch their pilot program, MakerDAO was chosen as the first partner since the DAO is the single biggest USDC holder.
The approval of Coinbase’s proposal will allow for Coinbase Prime to custody up to $1.6 billion worth of USDC. MakerDAO, in return, will also benefit from this arrangement as the organization wil receive a 1.5% reward on USDC held by Coinbase Prime.
Commenting on this partnership, Jennifer Senhaji, Growth & Business Development, MakerDAO, said
“Coinbase is uniquely situated to offer a USDC Rewards Program that fulfills these criteria. In addition to Coinbase’s established reputation, it has been a longstanding partner of MakerDAO. The 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.”
In addition to holding its custody, Coinbase is also looking to provide multi-chain support down the line, as well as making USD to USDC transfers far easier than it is today.
Is MKR stuck in the bearish woes?
Although the cryptocurrency did post one green candle today, it is still in a downtrend on the larger timeframe. Over the pastweek, MKR lost a little under 16% as itst price slipped from nearly $1,100 to $935.
However, the 86% rally from the month before will continue to invalidate any dent in the current market. Furthermore, this correction is also serving as a sign of the asset cooling down after having hit the overbought zone earlier this month. If the fall in price does not deteriorate, MKR will be safe, or else a possible drop to $800 is possible.
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