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So no FDIC insurance on the accounts? That seems like a non starter. I don’t understand why Kraken didn’t just use brokered accounts like every other FI that

by adrr 6y ago

So no FDIC insurance on the accounts? That seems like a non starter. I don’t understand why Kraken didn’t just use brokered accounts like every other FI that doesn’t have a bank charter?

garmaine 6y ago
No brokerage accounts have FDIC insurance.
- adrr 6y ago
  The sweep accounts have FDIC insurance. They are brokered deposit accounts which i was talking about not brokerage accounts. https://www.investopedia.com/terms/b/brokereddeposit.asp https://www.investopedia.com/terms/b/brokereddeposit.asp
- optimiz3 6y ago
  Most have SDIC insurance.
colechristensen 6y ago
Probably no banks would touch them. The ability to transfer crypto around introduces huge amounts of regulatory risk with money laundering, etc.