Upland: Berlin is here!

MakerDAO, the organization behind the DAI stablecoin, has purchased $700 million worth of US Treasuries, bringing the total DAO Treasury holdings to $1.2 billion.

The MakerDAO community had already held a preliminary vote in March to increase its Treasury holdings from $500 million to $1.25 billion.

of suggestion It passed with 77.13 percent in favor and included plans to spend an additional $750 million on Treasuries. These Treasuries were to be purchased “in equal installments over six months of maturity so that an equal amount of U.S. Treasuries would mature every other week (i.e., 12 “slots” over six months. , i.e. 750 million/12 = 62.5 million per slot). ”

As part of its fixed income strategy, MakerDAO also introduces a 6-month US Treasury Ladder strategy with bi-weekly rollovers. This approach allows organizations to leverage the current revenue environment to increase revenue.

The purchase was executed by Monetalis Clydesdale Vault, a digital asset manager on behalf of MakerDAO.

Monetalis Group CEO Allan Pedersen said MakerDAO’s increased exposure to real-world assets is a “powerful, reliable and flexible solution” that will increase the protocol’s revenue.

Meanwhile, stablecoin issuer Circle has resumed buying U.S. Treasury bills as a backup asset. circle provident fund (Managed by BlackRock).

Circle ditched all of its holdings of short-term Treasury bills last month amid the U.S. debt ceiling dispute, saying CEO Jeremy Allaire said it was doing so because of a “compromise on the U.S. government’s ability to service its debt obligations.” possibility of

bet hedge

This recent acquisition is consistent with the organization’s plans to increase its exposure to such assets, outlined in a proposal announced in March 2023.

The decision is more resilient after the company’s stablecoin DAI temporarily lost parity with the US dollar on March 11, the day after Silicon Valley Bank’s collapse, and fell to $0.89. It was part of MakerDAO’s efforts to

The SVB demise has affected several major stablecoins, including Circle’s USDC, which DAI uses in its Peg Stability Module (PSM). In response, MakerDAO planned to diversify from USDC by investing a portion of USDC in PSM to acquire a proposed $750 million Treasury bond.

MakerDAO’s US Treasury strategy is not new to the organization. The DAO first purchased $500 million worth of bonds in October 2022, seeing this as a way to diversify its collateral pool with low-risk traditional assets.

By Jules

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