In August, MakerDAO, the organization behind the decentralized Dai stablecoin, provided $100 million of credit to Huntingdon Valley Bank (HVB), a Pennsylvania-based community bank, which it will use to provide new loans to local businesses in the Philadelphia area.
This is a remarkable moment.
One of the leading decentralized autonomous organizations in the cryptocurrency world is now funding a publicly quoted and regulated US bank, which is not allowed to hold cryptocurrencies on its own balance sheet, and in return deriving yield and collateral protection from conventional loans – mortgages, commercial credits to small and medium-size businesses – all held in a master trust.
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