The community of decentralized organization MakerDAO has just approved the creation of a $100 million DAI vault for Huntingdon Valley Bank of America, a US bank founded in 1891.
Huntingdon Valley Bank will reportedly now be able to borrow stablecoins after posting off-balance sheet loans as collateral.
Over the next 12 months, the bank's maximum borrowing limit can be raised to $1 billion.
Huntingdon Valley Bank will use the funds received to support lending operations.
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MakerDAO will be able to receive a yield of 3% per annum. Delaware-based MakerDAO Bank Participation Trust will manage the bank's lending assets on behalf of the DeFi protocol.
The decision has been approved by the holders of 117,540 MKRs, 87.24% of the participants in the vote.
Hugh Ragsdale, MakerDAO's spokesperson for real world assets, has said:
"HVB's proposal, Huntingdon Valley Bank, enhances MakerDAO's balance sheet and reputation. Financially, Maker offers a turnkey, diversified, wholesale solution to generate returns in real-world assets (non-cryptocurrency correlated)."