Amid the bloodbath in the crypto, one good tide came from the traditional bank for MakerDAO, a DAI stablecoin issuer. According to the recent tweet, MakerDAO raised a proposal to add Huntingdon Valley Bank (HVB) for a new 100 million DAI debt ceiling participant.
At the time of writing, over 83% of voters are favoring the decision to accept RWA-009 participation with almost 0% resistance. The voting for the proposal began on July 4 and will end on July 7.
MakerDAO would develop a vault with 100 million DAI for HVB as part of a new collateral type in the Maker Protocol if the proposal passes.
As per the source, a first Multi-Bank Participation Trust (MBPTrust) will be built in Delaware. It will provide easy access to the capital from HVB with DAI stablecoin. The trust will also ensure the smooth operation of DAI minting and destruction by vault.
This is the first time in DeFi history that a traditional U.S. bank is taking part in the creation of a collateral vault using the DeFi protocol. It will enable Maker Protocol to offer conventional loans to borrowers in the real world, which will be fully backed by traditional institutions.
Also Read: MakerDAO Votes Against Adding a Lending Oversight Core Unit
It seems like MakerDAO strives for more integration with traditional finance. Before this, MakerDAO passed a proposal to spend $500 million DAI as an investment in treasuries and corporate bonds.
Since it is currently forbidden to provide loans in U.S. dollars, the crypto community views this agreement as essential for the Maker Protocol.
