rumors that big banks may soon be able to custody your crypto
making mortgages backed by Bitcoin a reality for the masses
If BOA or Wells Fargo would custody BTC and it was FDIC insured up to 250k Btc would whale bigly.
Only downside
they’ll operate based on a fractional reserve
likely paying a tiny bit of interest
double edged sword
This makes FDIC insurance less likely, or maybe only to a lower notional.
Sounds like they are planning on Rehypothecation.
Let'em try. A small faltering, a deeper slip here and there. Small banks, too big to fail banks. Some combinations of ingredients may turn bank runs into virtual short squeeze events - where it isn't the order book that matters, but the size of the OTC desk. Interesting times indeed.