MakerDAO Approves $100 Million Stablecoin Loan Vault for Huntingdon Valley Bank

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Today’s Cryptocurrency Headline

MakerDAO has approved Huntingdon Valley Bank, a US-based regulated bank founded in 1871, to open a stablecoin vault. This marks the first time a U.S. bank has connected to the DeFi ecosystem. The vault will work as a system allowing the bank to borrow DAI tokens after depositing off-chain loans on its balance sheet as collateral. At launch, the bank will be able to borrow up to $100 million, with the debt ceiling increasing to $1 billion over the next 12 months. The DAI borrowed from the vault will be used to support the bank’s operations, which will generate an estimated 3% yield for MakerDAO.

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