U.S. FDIC tells Signature crypto clients to close accounts by April 5

Re:U.S. FDIC tells Signature crypto clients to close account... by bmitc on Wednesday March 29, 2023 @12:04AM (#35352334)

> 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_l...

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Re:U.S. FDIC tells Signature crypto clients to close account... by panarky on Wednesday March 29, 2023 @12:29AM (#35352587)

> 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?

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Re:U.S. FDIC tells Signature crypto clients to close account... by medellin on Wednesday March 29, 2023 @12:09AM (#35352396)

So 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

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Re:U.S. FDIC tells Signature crypto clients to close account... by bmitc on Wednesday March 29, 2023 @01:56AM (#35353187)

Schwab 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".

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Re:U.S. FDIC tells Signature crypto clients to close account... by medellin on Wednesday March 29, 2023 @11:28AM (#35358661)

Kraken 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

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