MakerDAO voting on collaborating with a traditional bank

cointelegraph.com:

MakerDAO is voting on a proposal that will bring a traditional bank into its ecosystem for the first time, allowing the bank to borrow against its assets using decentralized finance (DeFi).

Currently 83% of voters are in favor of the proposal. Voting ends at 12pm ET on July 7.

The proposal involves creating a vault with 100 million Dai (DAI) for Huntingdon Valley Bank (HVB) as part of a new collateral type in the Maker Protocol.

This will essentially allow the Maker Protocol to begin issuing real-world loans to borrowers through a fully backed traditional institution by meeting the bank’s standards.

The first collateral integration from a US-based bank in the DeFi ecosystem is getting closer.The Maker Governance votes to add RWA-009, a 100 million DAI debt ceiling participation facility proposed by the Huntingdon Valley Bank, as a new collateral type in the Maker Protocol pic.twitter.com/fOdusdjCFS

The move to integrate the bank follows hot on the heels of another decision to become more closely entwined with traditional finance after MakerDAO members voted in favor of spending $500 million DAI investing in treasuries and corporate bonds last week.

MakerDAO governs the Maker Protocol, which issues U.S. dollar-pegged DAI stablecoins in exchange for user deposits of Ether (ETH) and nearly 30 other cryptocurrencies. Huntingdon Valley Bank (HVB) is a traditional bank from Pennsylvania founded in 1871.

The deal with HVB is important for the Maker Protocol because it is not currently allowed to issue U.S. dollar loans directly to borrowers. However, a special entity will be established by MakerDAO to make integration with the traditional bank possible.

First, a Multi-Bank Participation Trust (MBPTrust) will be established by MakerDAO