Dechert LLP advised Huntingdon Valley Bank (HVB) in connection with a master participation arrangement to sell participations in commercial loans to the MakerDAO PROTOCOL, believed to be the first commercial loan participation between a U.S. regulated financial institution and decentralized digital currency (the “DAI” a stable coin).

This effectively converts 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.

Huntingdon Valley Bank is a wholly owned subsidiary of HV Bancorp, Inc., which primarily serves communities located in the Greater Philadelphia area.

MakerDAO is an open-source project on the Ethereum blockchain, managed by people around the world who hold its governance token, MKR.

The Dechert deal team representing Huntingdon consisted of finance partner Linda Ann Bartosch and associates Jesse Miller and David Bertone.