Coinbase wants to purchase USDC from Makerdao worth 1.6 billion USD

Coinbase wants to purchase USDC from Makerdao worth 1.6 billion USD

The very centralized crypto exchange Coinbase has proposed an investment line with Makerdao, the organization behind the largest decentralized stable coin.

It seems that adversities really make strange bed comrades.

The proposal would move a third of the circle stable coin that supports Makers Dai Stablecoin, estimated $ 1.6 billion, at Coinbase Prime in exchange for a return of 1.5 %-or an estimated $ 24 million in makerdao income. The proposal comes because the coin base shares have broken down and maker expects the regulatory risk that arise from its USDC stocks.

maker makes the best of his USDC

makerdao is the

The stable coin turns 35 % of the collateral of DAI, about 4.8 billion US dollars. The dollar-assisted stable coin enables maker to invest in non-crypto assets, as with its latest credit line of $ 100 million at Huntingdon Valley Bank.

The leadership of maker has demanded that the token team have moved away from USDC Blacks List Ethereum addresses in response to US tornado-cash sanctions. But the maker community was angry with Circle-even before the Ministry of Finance interfered.

"In recent years, Maker has actively thought about how to get the USDC out of his balance sheet," Greg di Prisco, Makers Head of Business Development, told Blockworks. "Maker holds USDC and does nothing."

The coin base proposal is proposed as a way to achieve a return on the USDC stocks of the DAO. And while Coinbase does not follow the decentralized principles of maker, the management of the DAO sees the centralized stock exchange as a pragmatic business partner.

"In an ideal world I would say that we are fully secured by crypto security because we receive maximum decentralization. In my opinion, this is impossible," Sam Macpherson, an engineer at Maker, told Blockworks. "There is simply not enough demand for loans against ETH [and other cryptocurrencies]."

Even Rune Christensen, co -founder of Makerdao, who cited the indictment that DAI asks to shift his support to Ethereum, spoke in favor of the initiative. in the forum post by Coinbase it says: " Regulatory/legal/confiscation this proposal does not change - it does not differ from keeping USDC. ”

The proposal would keep maker as a customer for coinbase, which USDC founded in 2018. The company receives from Circle interest on its USDC stocks, which in June amounted to a total of $ 360 million per coinbase SEC-Environment .

Coinbase makes his pitch weeks after Christians threatened to "yoloen".

"Coinbase now says: 'Hey, so you don't leave USDC, we give you 1.6 %to stay," said di Prisco.

Coinbase has had a hard year in the middle of the downturn on the cryptom market. Sales and active users of the company declined between the first and second quarter, and Coinbase's share price has fallen by almost 75 % since the beginning of 2022.

The stock exchange is also the subject of several complaints regarding its list of digital assets that the SEC recently classified as securities.

COINBASE hopes for positive news if his proposal is made on the Maker's governance portal.

Coinbase refused to comment.

. .

The article Coinbase Looking to Acquire $ 1.6b of Makerdao’s USDC is not a financial advice.