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In the second edition of CryptoMondays Philly, the DeFi Philly Organizers hosted Daniel Krewson from Huntingdon Valley Bank, the first US-regulated bank to form a master participation fund from a DAO. The speaker for the event was Philly local and HVB Senior Vice President / Market President, Daniel Krewson, who with his team orchestrated HVB’s partnership with MakerDAO. The discussion between DeFi Philly and HVB will mark the first time the bank has spoken publicly at a Web3 event on the matter.
The event, which was held on Monday September 26 as part of CryptoMondays, was free and open to the public. CryptoMondays, which is the largest crypto VC meetup in the world with 35+ chapters, was started by Facebook Angel investor Lou Kerner. Kerner also served as a main motivation for the world’s largest NFT conference, NFT NYC. DeFi Philly is the local chapter lead for CryptoMondays Philadelphia.
DeFi Philly, Philadelphia’s premiere Web3 meetup that hosts 100 IRL events a year, announces a CryptoMondays meetup on Monday, September 26, featuring Huntingdon Valley Bank (HVB), the first US-regulated financial institution to form a master participation fund from a Decentralized Autonomous Organization (DAO).
Why does it matter?
On August 23, 2022, MakerDAO announced a formal offering to Huntingdon Valley Bank (HVB) of $100 million DAI, marking the first commercial loan participation agreement between a US Regulated Financial Institution and a decentralized digital currency. DAI was sought by the bank to support ecosystem growth and investments.
Importance of Loan for DeFi Industry
Krewson talked about the importance the moment has for DeFi, calling it a pivotal moment that bridges decentralized finance and traditional finance.
“Using the $100 million MakerDAO vault to purchase an interest in real-world loans is the first bridge between DeFi and traditional regulated institutions. This will be looked back at as the beginning of a new era blending the boundaries between these two markets,” said Krewson.
The partnership was initiated by a proposal that was submitted by HVB in March. MakerDAO formally brought in HVB as a new stablecoin vault in July with a governance vote, which garnered 87% approval.
MakerDAO, and DAOs in general, typically vote on the future of the platform via proposals. Stakeholders on DAO decide what will happen on the platform through a tokenized governance system of voting.
Krewson and other industry experts anticipate this loan will be looked upon as a pivotal moment in the future growth of the blockchain ecosystem.
Mike McCoy, a longtime member and community organizer within the Philadelphia blockchain scene, discussed the importance of the loan.
“This event is a watershed moment and a prime example of how lending Real World Assets (RWA) can be a reality in DeFi. In this conversation, I look forward to learning what HVB considers as the long-term benefits and risks to allowing MakerDAO users to open up this new financial asset class, and much more.”
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