3 ms·
> One interesting thing is that properly run crypto custodians don't make the news, are 100% collateralized and can withstand 100% withdrawals in an orderly fas
by bmitc 4y ago
> One interesting thing is that properly run crypto custodians don't make the news, are 100% collateralized and can withstand 100% withdrawals in an orderly fashion.
Which crypto custodians are those?
> In comparison, every bank in existence would have trouble with this.
That isn't true. Schwab just announced that they can cover 100% of bank deposits without selling a single security.
https://www.financialadvisoriq.com/c/3995094/511764/schwab_lose_bank_deposits_stay_open https://www.financialadvisoriq.com/c/3995094/511764/schwab_l...
- medellin 4y agoSo the one cool thing with crypto is that you can actually verify it. Hopefully proof of reserve will become a requirement in the future to operate an exchange
- bmitc 4y agoSchwab is a brokerage in addition to a bank. They are scrutinized infinitely more than any crypto exchange I known of. Most crypto statements can be suffixed with "in theory". > Hopefully proof of reserve will become a requirement in the future to operate an exchange That's an interesting idea. Do any have this now?
- medellin 4y agoKraken is the only that I currently know of but i think the process for it could be improved still https://www.kraken.com/proof-of-reserves https://www.kraken.com/proof-of-reserves
- panarky 4y ago> without selling a single security Why sell a security that's only worth 74 cents on the dollar when you can use it as collateral to borrow 100 cents on the dollar, and if you can't pay back the loan then the public will bail your ass out?