Protocol Maker and Huntingdon Valley Bank will start issuing loans
The MakerDAO team decided to integrate a traditional bank into its ecosystem, this decision was made by voting.
Recently, the protocol community voted to invest 500 million DAI in US Treasuries and bonds. The company explained that 80% of the funds will be invested in US Treasury bonds, and 20% in corporate bonds.
As indicated in the proposal, as part of the new type of collateral, there was a need to create a vault with 100 million DAI for Huntingdon Valley Bank. Thanks to this, the Maker protocol will be able to offer borrowers real loans with the participation of traditional institutions.
Currently, Maker Protocol cannot provide direct loans in US dollars to borrowers, so cooperation with Huntingdon Valley Bank is a truly important event. MakerDAO will try to link the bank's fund with DAI stablecoins by forming a multi-bank trust in Delaware.
The trust fund will deal with commercial issues with Huntingdon Valley Bank, as well as the release and destruction of DAI outside the vault. It is known that the bank will own 50% of the loan, and later ask MakerDAO to reduce its ownership share to a minimum of 5%.
Huntingdon Valley Bank is a traditional Pennsylvania bank with assets of about $500 million. Granting them loans in accordance with Pennsylvania law through the Maker protocol will reduce risks and accelerate the adoption of cryptocurrencies.
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https://coin-signal.com/cryptonews/protocol-maker-and-huntingdon-valley-bank-will-start-issuing-loans/
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