Crypto lending protocol MakerDAO has approved the transfer of up to $500 million in $USDC stablecoins to Coinbase Custody, as part of its strategy to diversify its reserves and increase revenues by investing in yield-generating traditional financial assets.
The U.S.-based crypto exchange's custodial arm will pay a 2.6% annual yield on deposits, and the proposal forbids Coinbase Custody from rehypothecating (lend, reinvest or use in other ways) the assets in the account.
Coinbase must keep the tokens in cold crypto wallets. Maker will be able to withdraw funds from the vault within 24 hours, and funds in cold storage are insured up to the $500 million limit.
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DeFi
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