Leading cryptocurrency exchange Coinbase announced Monday the launch of its institutional rewards program in partnership with stablecoin issuer MakerDAO.
Coinbase to Custody $1.6 Billion USDC
The exchange disclosed that MakerDAO community members accepted its proposal to the custody of $1.6 billion USDC stablecoin pegged 1:1 to the value of the U.S dollar with Coinbase Prime, designed to provide institutional and corporate solutions to specific customers.
The Coinbase proposition submitted last month was voted yes by 75.05% of the decentralized autonomous community members, with only 11.05% rejection.
With this collaboration, MakerDAO will have the opportunity to earn 1.5% rewards on its USDC treasury holdings. The funds will also be readily accessible to the DAO Peg Stability Module.
Coinbase, on the other hand, will benefit from the partnership to offer rewards programs to its institutional clients for the first time since its launch in May 2012.
“Today, the MakerDAO community approved a Coinbase proposal that will allow them to earn rewards on their treasury holdings of USDC. For Coinbase, this expands our USDC rewards program to an institutional client for the first time, reinforcing our commitment to USDC as a key component of a new financial,” the company said.
Aside from providing rewards programs to its institutional customers, the new partnership with the exchange seeks to expand the adoption of USDC. Coinbase believes stablecoins will play a crucial role in creating an open financial system.
Long-Standing Partner
As one of the leading exchanges in the industry, Coinbase has an existing relationship with the stablecoin issuer and owner of DAI. The company noted that it previously provided liquidity to the decentralized platform through its USDC Bootstrapped Fund and helped in the first listing of DAI stablecoin.
Speaking on the new partnership, Jennifer Senhaji, head of growth and business development at MakerDAO, noted that the approval aligns with the community’s objective to invest Maker’s collateral into short-term bonds.
“It was agreed that any collateral deployed should meet the criteria of offering safety, cost structure, and flexibility. Coinbase is uniquely situated to offer a USDC Rewards Program that fulfills these criteria. In addition to Coinbase’s established reputation, it has been a longstanding partner of MakerDAO,” said Senhaji.
She further noted that the revenue generated through the deal would enable the platform to enhance its “overarching mission to create a global, trustworthy financial future built on decentralized rails.”
