• Tue. Oct 4th, 2022
1661290897030 18d73445 b857 4a35 ad7f aa1c784343db
1661290897030 18d73445 b857 4a35 ad7f aa1c784343db

  • The $100 million DAI loan is the first collaboration between MakerDAO and a US regulated bank.

MakerDAO has announced its “first commercial loan collaboration” with a US-regulated bank, opening up the realm of possibility between real-world finance and decentralised finance (DeFi).

The loan programme, set to debut at $100 million DAI, will help Huntingdon Valley Bank support its businesses, MakerDAO said on Tuesday.

Maker is connecting to the legacy economy through the largest real-world asset vault to date and its first relationship with a US-based bank,” the DAI stablecoin issuer noted.DAI is pegged 1:1 to the US dollar.

The facility will work via a recently established Trust dubbed the RWA Master Participation Trust, which will maintain access to DAI liquidity. Meanwhile, the bank will handle loan origination, submitting eligible ones to the Trust for participation.

Loan eligibility will be processed by Ankura Trust, who is the calculation agent.

On a monthly basis, HVBank will remit to the Trust the pro-rata portion of all amounts received by HVBank in respect of the loan Participations. Upon receipt of such amounts, the Trustee will make payments in accordance with the cash waterfall defined in the Trust Agreement,” MakerDAO wrote.

And in all these, Maker or the Trust and HVBank will not operate on a borrower-lender type of relationship, the protocol emphasised.

The post MakerDAO announces $100M DAI loan participation with US-based Huntingdon Valley Bank appeared first on CoinJournal.

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist. He earned an M.Sc from the University of Nicosia in Cyprus in Blockchain and Digital Currency. He uses a variety of social media channels to promote his ideas and projects , and he's a major proponent of Bitcoin in Africa.

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