MakerDAO purchases $700 million in Treasury bonds, grows holdings to $1.2 billion

Quick Take

  • MakerDAO increased its U.S. Treasury bond holdings to $1.2 billion after a $700 million purchase.
  • The organization initially purchased $500 million in bonds in October 2022. 

MakerDAO, the core development organization behind the DAI stablecoin, completed the purchase of over $700 million in U.S. Treasury bonds. 

Following $500 million bond purchase in October 2022, the organization's total bond holdings now sits at $1.2 billion. MakerDAO invested in the bonds as a way to increase exposure to low-risk, liquid traditional assets.

The digital asset manager Monetalis Clydesdale Vault, born from the DeFi lender Monetalis Group, completed the purchase on behalf of MakerDAO, according to a statement.

"MakerDAO is a pioneer and leader in the DeFi space and has built up a large volume of funds in its peg-stability-module, which ensures the stability of the DAI stablecoin," Monetalis Group CEO Allan Pedersen said.


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Real-world asset exposure

"Through the diversification of its collateral pool with this U.S. Treasury ladder strategy, Maker is taking advantage of the current yield environment and putting its assets to work," Pedersen added. "Given the success of the initial deployment and today’s robust bond market, this increase in Maker’s real-world asset exposure is a strong, reliable, and flexible solution that will generate more revenue for the protocol.”

MakerDAO raised its debt ceiling from $500 million to $1.25 billion in March. Additionally, MakerDAO proposed to raise the DAI Savings Rate to 3.33% on May 26, which could raise the stablecoin's market capitalization by increasing the demand for holding DAI if approved. 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.


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