MakerDAO Increases U.S. Treasury Holdings by $700 Million, Totaling $1.2 Billion

MakerDAO, the entity behind the stablecoin DAI, has completed an additional purchase of $700 million in U.S. Treasury bonds.

MakerDAO's Expanding Treasury Holdings

With this latest acquisition, MakerDAO's total U.S. Treasury holdings have reached $1.2 billion. This follows an earlier purchase of $500 million in Treasury bonds in October 2022. The investment in U.S. Treasuries represents MakerDAO's strategy to engage with low-risk financial instruments.

According to an official statement, the digital asset management firm Monetalis Clydesdale will conduct the purchase on behalf of MakerDAO.

"MakerDAO is a pioneer in the DeFi market, building a substantial fund to ensure the stability of the DAI stablecoin," stated Allan Pedersen, CEO of Monetalis Group.

Increasing Exposure to Real-World Assets

"By diversifying collateral assets in the pool with U.S. Treasury bonds, Maker is leveraging the favorable yield environment to maximize the efficiency of its holdings. With initial successes and the stability of the bond market, the protocol is poised to generate more revenue, offering greater flexibility and safety in the future," Pedersen added.

In March, MakerDAO raised its debt ceiling from $500 million to $1.25 billion. Additionally, on June 15, MakerDAO approved a proposal to increase the Dai Savings Rate to 3.49%, which is expected to boost demand for holding DAI and expand its market capitalization.

Stay tuned for further updates on MakerDAO's strategic investments and their impact on the DeFi landscape.