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Cutting their trading will also reduce their risk too, right? Trading desks need to hold reserves against their risk. (Whether for legal reasons, or just to r
by mathattack 10y ago
Cutting their trading will also reduce their risk too, right? Trading desks need to hold reserves against their risk. (Whether for legal reasons, or just to reassure counterparties) If your capital is provided by people making bank deposits, that's cheap. If your capital is provide by VCs, that's expensive.
- otoburb 10y agoExpensive VC capital[1] being the biggest factor for this move makes much more sense. Upon reflection, the other cost savings I listed are simply ancillary, or side-benefits, after addressing the underlying driver that you identified. [1] http://www.coindesk.com/circle-raises-50-million-with-goldman-sachs-support/ http://www.coindesk.com/circle-raises-50-million-with-goldma...