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MakerDAO Approves Coinbase Custody for Onboarding 500 Million USDC to Institutional Rewards Program

Cointime Official

April 21 (Cointime) - MakerDAO, a decentralized global reserve bank that resides on the Ethereum blockchain, announced that it has approved Coinbase Custody (RWA014) as a new real-world asset vault type to onboard up to 500 million USDC from the PSM to the Coinbase USDC Institutional Rewards program.

According to the Strategic Finance Core Unit's Legal Assessment, the transfer will be implemented under the following parameters: the Coinbase Custody Vault (RWA014) debt ceiling is set at 500 million, the USDC Rewards Rate is 2.6% calculated monthly, and Coinbase will not charge fees for participation in the rewards program or custody of the USDC.

The transfer involves moving 500 million USDC from the PSM to Coinbase Custody International Limited (CCI) to participate in the Coinbase Institutional USDC Rewards Program.

Read full thread:
In September 2021, @CoinbaseInsto submitted MIP81: Coinbase USDC Institutional Rewards — a proposal to onboard a portion of the PSM's USDC to Coinbase Prime in order to participate in @Coinbase’s USDC Institutional Rewards program.

The Strategic Finance Core Unit's Legal Assessment specified that the allocation of 500 million USDC from the PSM to @Coinbase's Institutional Rewards program will be implemented based on the parameters outlined below: https://forum.makerdao.com/t/coinbase-custody-legal-assessment/20384

• Coinbase Custody Vault (RWA014) debt ceiling: 500 million.

• USDC Rewards Rate: 2.6%. USDC rewards are calculated on a monthly basis.

• Fees: Coinbase won’t charge any fees for participation in the rewards program or for custody of the USDC.

Specifically, the transfer involves 500 million USDC from the PSM to Coinbase Custody International Limited (CCI) in connection with participation in the Coinbase Institutional USDC Rewards Program.

Coinbase Custody International Limited is an Irish company and a wholly owned subsidiary of Coinbase Global Inc that provides Coinbase Custody services to institutions and high net-worth individuals in non-US jurisdictions.

As per a simultaneous Governance Poll, the USDC in question is required to be held in cold storage, subject to the parameters outlined below:

https://vote.makerdao.com/polling/Qmf3y9vG#vote-breakdown

• Withdrawal time: up to 24 hours once Maker Governance requests it.

• Insurance: Commercial Crime Insurance of $320 million and extra Specie Insurance of $500 million.

For a complete understanding, we encourage you to read all official publications on the Maker Forum about @Coinbase's USDC Institutional Rewards proposal.

MIP81 Proposal: https://forum.makerdao.com/t/mip81-coinbase-usdc-institutional-rewards/17703…

Strategic Finance Core Unit's Legal Assessment: https://forum.makerdao.com/t/coinbase-custody-legal-assessment/20384

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