MakerDAO Transfers $500 Million to Coinbase Custody

• MakerDAO transfers $500 million to Coinbase’s custodial arm Coinbase Custody.
• The crypto lending protocol stated the funds were converted to USDC using the PSM.
• Coinbase Custody will now pay MakerDAO a 2.6% annual yield on deposits.

Crypto lending protocol MakerDAO transferred $500 million to global cryptocurrency exchange Coinbase’s custodial subsidiary, Coinbase Custody. Through this move, MakerDAO ensures an annual rewards rate of 2.6%, which translates to an estimated annual profit of 13 million DAI.

Regarding the transfer, Coinbase Institutional (@CoinbaseInsto) tweeted:

We are pleased to share that @MakerDAO has transferred $500M to Coinbase Custody as a first step in our USDC institutional rewards program launched in Q4 2022! This move reinforces our commitment to enhancing the stablecoin ecosystem and empowering the #DeFi community.

— Coinbase Institutional (@CoinbaseInsto) June 5, 2023

Yesterday, MakerDAO revealed Coinbase deployed 500 million DAI from the Coinbase Custody vault. Following the approval of the Coinbase Institutional Rewards proposal by Maker Governance, the funds were converted to USDC using the PSM (Peg Stabilization Modu…

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