I explained a long time ago how this Crypto news of exchanges is likely bad news for Coinbase not good news. Now all the sudeen everyone is figuring this out. The scarier part for the rest of us is what risks Coinbase will have to take now to prop up a failing bizz.
Check this out:
Alesia Haas, Coinbase’s chief financial officer, said the company works “diligently to avoid conflict of interests” and that the market structure in traditional securities may not be a fit for crypto. A spokesperson added that Coinbase’s custody business “is not at issue in our case with the SEC.”
Coinbase is currently the only trading agent for BlackRock, which will buy and sell Bitcoin for its ETF through Coinbase Prime. And its lending business, a smaller part of the organization, is yet another critical cog in the Bitcoin ETF machine. Issuers such as BlackRock can borrow Bitcoin or cash from Coinbase for trades on a short-term basis.
But the financing capacity of Coinbase — coming from the company’s own balance sheet — could potentially create a bottleneck for such trades. To be sure, BlackRock at least has multiple ways to manage trades, even if financing isn’t available.
We are going to have a huge crash and scandal in this space, missing tokens, tokens pledged and not delivered... and the US Gov ain't coming to the rescue.
Then after commercial real estate in which I think the Gov Will come to the rescue in some form.
Horrifying 60 min piece on office buildings NYC... this is a real nightmare.
WORK FROM HOME<-- YOU HAVE RUINED THE CITIES. SELFISH!