HV Bancorp, Inc. Participates First Commercial Loan to the MakerDAO Protocol and the DAI Stable Coin
August 19 2022 - 4:18PM
HV Bancorp, Inc. (hereinafter the “Company” ) (Nasdaq Capital
Market: HVBC), the holding company of Huntingdon Valley Bank a/k/a
HVB the better experience Bank (hereinafter “HVB”), announced the
following:
HVB and The MakerDAO PROTOCOL (“MakerDAO”) pioneer
the first commercial loan participation between a U.S. Regulated
Financial Institution and a decentralized digital currency (the
“DAI” a stable coin). Effectively converting a digital currency to
a real world asset that generates a stable yield for MakerDAO’s DAI
stable coin and simultaneously provides commercial loan funding to
HVB for lending into the Philadelphia Market Service Area.
Through this transaction DAI stable coins were
converted to US Dollars by a U.S. regulated broker-dealer and those
funds were deposited into a Delaware Trust Account (“DTA”) for the
benefit of MakerDAO. The DTA Trustee uses these dollars to buy loan
participations from HVB through a Master Loan Participation
Agreement (“MLPA”) approved by a successful vote of MakerDAO token
holders. MakerDAO will prefund the DTA with $100 million US Dollars
converted from DAI stable coins and is making the balance of these
funds available to HVB Lenders for future commercial loan funding
in accordance with the MLPA. The goal of the transaction was to
allow the DAI to be supported by yield generating commercial assets
originated through a U.S. regulated financial institution. With the
MakerDAO program, HVB benefits by having a stable and consistent
partner to sell loan participations. This transaction enables HVB
to expand its lending activities in the Greater Philadelphia area
because it can now consistently syndicate portions of new loan
originations to DTA.
Travis J. Thompson, Esq. Chairman and CEO of HVB
commented, “This is the kind of financial innovation that helps
bring stable assets to the Cryptocurrency space and provides real
benefits to the U.S, economy by bringing a new funding source to
the table that will enable economic growth to continue in the
greater Philadelphia market area through expanded commercial
lending activities. I commend Daniel Krewson SVP & Market
President and Hugh Connelly, EVP & Chief Lending Officer along
with the HVB team and the folks at MakerDAO for meticulously
following through on this innovative idea.”
Hugh W. Connelly, EVP & Chief Lending Officer
commented that, “Rather than attempting to evade regulation, the
MakerDAO community has joined with a US regulated institution to
transform some of their digital currency into an interest yielding
asset that embraces U.S. underwriting standards, is backed by U.S.
real estate and the proceeds generated therefrom can be converted
back into DAI through their U.S. broker dealer. This creates a
win-win between a US bank and a US stable coin that has worldwide
adoption.”
CRYPTOCURRENCIES AND DIGITAL CURRENCIES ARE
NOT FDIC INSURED. HVB does not offer or hold crypto assets
of any kind and cryptocurrencies, including by not limited to
MakerDAO and DAI, ARE NOT FDIC INSURED. HVB does not offer deposit
products which are, in any way, related to crypto assets and this
participation program is not deposit related in any fashion and
only relates to loans originated by HVB which are not activities
with crypto assets, smart contracts or the block chain.
About HV Bancorp, Inc.
HV Bancorp, Inc. (Nasdaq Capital Market: HVBC) is a
bank holding company headquartered in Doylestown, PA. Through its
wholly owned subsidiary Huntingdon Valley Bank, we primarily serve
communities located in Montgomery, Bucks and Philadelphia Counties
in Pennsylvania, New Castle County in Delaware, and Burlington
County in New Jersey from our executive office, seven full service
bank offices and one limited service bank office. We also operate
six loan production and sales offices in our geographical
footprint.
Forward-Looking StatementsCertain
statements contained herein are “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such
forward-looking statements may be identified by reference to a
future period or periods, or by the use of forward-looking
terminology, such as “may,” “will,” “believe,” “expect,”
“estimate,” “anticipate,” “continue,” or similar terms or
variations on those terms, or the negative of those terms. Such
forward-looking statements are subject to risk and uncertainties
described in our SEC filings, which could cause actual results to
differ materially from those currently anticipated due to a number
of factors, which include, but are not limited to, the negative
impact of severe wide-ranging and continuing disruptions caused by
the spread of coronavirus COVID-19 and any other pandemic, epidemic
or health-related crisis on current operations, customers and the
economy in general, inflation and monetary fluctuations and
volatility, changes in interest rate environment, increases in
nonperforming loans, legislative and regulatory changes that
adversely affect the business of the Company and the Bank, and
changes in the securities markets. Except as required by law, the
Company does not undertake any obligation to update any
forward-looking statements to reflect changes in belief,
expectations or event.
Contact: Joseph C. O’Neill, Jr.,EVP/ Chief
Financial Officer(267) 280-4000
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