Re:Coinbase to go public on 4/14
by tigger0jk on Friday April 02, 2021 @02:58PM
(#26674707)
I believe coinbase holds a lot of crypto - in the robinhood analogy, coinbase is their own clearing house. So they don't have to post collateral to themselves, but if crypto movement was all in one direction on a given day, they might rely on the market instead of the liquidity they themselves provide. Maybe in such a scenario they would be clever enough to NOT resolve all the trades instantly.
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Got it, so in general, they are _actually_ fronting you the asset (although you can't take it out of their control until you've paid up), as opposed to an IOU.
Re:Coinbase to go public on 4/14
by throwaway192874 on Friday April 02, 2021 @07:54PM
(#26677122)
Yeah, they already have the asset when you click buy. On "consumer", the blue one, when you click buy it literally does a direct market order off of Coinbase Pro to purchase the asset, and since it's on Pro they already have the crypto on platform.