The first loan will be for $100 million, as this is the current limit granted to the 150-year-old bank. Over the next twelve months, this ceiling may be increased to $1 billion.
The issuer of this DAI stablecoin loan is called MakerDAO. To decide to grant this loan, the team requested a vote with the community. The poll, initiated on Monday, July 4, ended with strong support for the proposal, with 87.24% of voters in favor of the creation of the safe. 3.12% of the participants in the vote rejected the initiative, against an abstention of 9.63%.
Growth adoption of DeFi solutions by traditional finance
MakerDAO is a decentralized finance (DeFi) protocol that helps users obtain DAI stablecoins in exchange for collateral. However, this is the first time that an American bank as important as the Huntingdon Valley Bank, a financial institution founded more than 150 years ago, has joined this ecosystem.
This is not really an exception in the cryptocurrency industry since several traditional banks like Citi or Goldman Sachs have implemented mechanisms in recent months that combine traditional finance with new digital currencies. With this new development, the stablecoin DAI could therefore obtain more visibility among investors.
As a stablecoin, DAI must perpetually maintain parity with the US dollar or get as close to it as possible. However, according to the predictions of WalletInvestor, the price of the DAI coin will be worth $0.998 in a year. But the site suggests that the token is a “bad” long-term investment.