MakerDAO Votes on Bringing a New Bank into the Ecosystem

Crypto lending platform MakerDAO continues its effort to strengthen the ties between decentralized finance and traditional finance. In line with this, MakerDAO is voting to add another commercial bank to the ecosystem to strengthen the bridge between Decentralized finance and traditional finance.

Cogent Bank, a Florida-based commercial bank, has offered to join MakerDAO’s RWA Master Participation Trust with a $100 million loan, according to MakerDAO’s governance forum. Here is the tweet where MakerDAO announced the voting and details:

The proposal will also be part of MakerDAO’s monthly governance cycle. In addition, the proposal seeks the same terms and conditions that apply to Pennsylvania-based Huntingdon Valley Bank (HVB). Under the same circumstances, MakerDAO will use the trust arm to tie capital in Cogent Bank into MakerDAO’s stablecoin, Dai (DAI). MakerDAO will be responsible for managing the partnership with the bank, as well as ensuring that the DAI is printed and destroyed.

Cogent Bank, the candidate bank that could join the MakerDAO ecosystem, was known as Pinnacle Bank before it was acquired in 2018. The Florida-based bank has $1.3 billion in assets under management. The bank is insured by the Federal Deposit Insurance Corporation.