MakerDAO is going to invest $1 billion in Tokenized US Treasuries.
MakerDao made a big announcement during ETHCC. MakerDAO has announced a major change to its backup strategy, the protocol behind this $5 billion stablecoin DAI. The platform plans to invest $1 billion in tokenized US Treasury products. This move aims to leverage US Treasury stability and combine it with DeFi.
Demand from the best players in the market
There are quite a few big players in this space, but the list includes BlackRock, BUIDL, Superstate and Ondo Finance who are eager to participate in MakerDAO's investment program. Carlos Domingo-Securities CEO and Blackrock Delivery Partner expressed his excitement about this initiative, saying, “We think this is a great move from MakerDAO and we are very excited to be involved with Blackrock BUIDL.”
The most famous name is Robert Leshner, the founder of Superstate, who also praised the initiative. Robert mentioned that the superstate USTB is the perfect partner for MakerDAO. Another co-founder of Ondo Financial is Nathan Allman, who shares similar ideals and highlights their mission to bring institutional-grade financial products to everyone.
Systematic change of MakerDAO
The team identified a major issue in the crypto world: promoting the RWA model in a sustainable manner. This investment represents a major restructuring under Rune Christensen's Endgame Plan. The goal is to strengthen MakerDAO's position in the DeFi sector. MakerDAO leads the integration of real-world asset (RWA) in crypto by backing its decentralized stablecoin with US government bonds and off-chain ledgers.
Impact on the market
US Treasuries have become attractive to protocol treasuries because they offer a low-risk instrument for stable yields. The market for tokenized treasuries has tripled in just one year, reaching $1.85 billion. MakerDAO's $1 billion allocation could result in another 55% growth in this sector.
Since this news came out, the price of MKR has taken an increase of 5.47%.
Positive sentiment for Crypto
This move is in line with the broader trend of cryptocurrencies gaining recognition from major financial institutions. BlackRock, a trillion dollar giant, sees this space as a “new finance” and hopes to participate in the MakerDAO initiative. The program was announced at the ETHCC in Brussels and applications open on August 12.
Recent regulatory victories, such as the SEC dropping investigations into Hiro Systems and Paxos, have also boosted confidence in the crypto community. This is a huge win for crypto as this is the second investigation the SEC has dropped in two consecutive days.
