U.S. Bank Will Connect With Ethereum’s MakerDAO To Borrow $100 Million #TOGRP7
Ethereum’s decentralized finance protocol MakerDAO proposed a historic vote to connect a U.S. bank to its platform, the Huntingdon Valley Bank (HVB). The community has approved the proposal and the financial entity will be able to access an initial debt ceiling of $100 million.
In step, the U.S. bank will be able to access liquidity in the form of the stablecoin DAI in exchange “for the sale of participation interests in the underlying whole loans” from HVB. The financial institution is focused on creating fixed and floating residential and commercial mortgages. This partnership will enable the bank to submit potential lust in which MakerDAO can participate via the RWA Master Participation Trust. Thus, the DeFi protocol can have a stake and real-world participation in this process.