MakerDAO, the decentralized autonomous organization (DAO) behind the stablecoin DAI is kicking off its $500 million investment strategy to allocate funds for traditional assets.
The issuer of the fourth-largest stablecoin by market cap is moving $500 million from its balance sheet to short-term US treasuries and corporate bonds to expand its asset exposure and revenue streams.
Following an executive vote by token holders, Maker now announces the completion of the pilot $1 million transaction.
“Maker Governance executed the first DAO balance sheet investment in high-quality bonds.
MIP65: Monetalis Clydesdale will activate a Maker Vault for the purpose of investing PSM’s USDC in liquid bond strategies with a debt ceiling of 500 million DAI.”
Maker says that additional executive votes will deploy the remaining $400 million. Of the total allocation, 80% will go to US-short term treasuries and 20% to corporate bonds.
“As per the recent ‘Asset Allocation for MIP65 (Clydesdale)’ Governance Poll, MKR holders and Delegates determined the specific distribution for this funds’ allocation.”
Maker says the total 500 million DAI will be split by digital asset bank Sygnum and investment management company Baillie Gifford.
Sygnum says it is working with investment giant Blackrock for the initial phase of the project.
“In the first phase, Sygnum is working with BlackRock Switzerland to allocate and invest $250 million into portfolio of BlackRock iShares ETFs.”
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