Explained: Kraken Exchange Data And Bank Charter

On today’s show, Preston talks with Bitcoin OG Dan Held about the Kraken exchange data and Bank Charter.

Preston Pysh
So Dan, you’re at Kraken, and recently there was big news on Kraken becoming, they’re going to get a bank charter, which I’m assuming automatically means that they’re going to FDIC insured for deposits. Is that assumption true, and what does all this mean as far as getting the bank charter?

Dan Held
Yeah, good questions. I’m on the product team-leading growth marketing, and we stay pretty laser-focused on day-to-day work, so we’re building out spot, futures, other financial instruments we’re looking at. On the banking side, that’s a little bit more out there on the roadmap, so I don’t spend a lot of time digging in on that.

Dan Held
From my understanding is that, since it’s full reserve, it’s a full reserve bank, you’re able to circumvent some requirements, and I think that might actually be around, I think we would be FDIC insured, but I don’t believe we have other requirements. But I’m not exactly sure, I’m speaking a little bit out of my expertise here. I do know that we can do, we can offer some services like lending and borrowing, where it is a full reserve bank, but some customers could elect to have some of their funds lent out. So I think some of that stuff is really fascinating.

Dan Held
I think infrastructure level, it connects us much more deeply in the financial [inaudible 00:06:49], so we don’t have to worry about finding a bank account. Back in 2013, this was actually a big, big deal, and if you were a bitcoin company, having a bank account was like the holy grail. So Silicon Valley Bank, only banked Coinbase, they didn’t bank any other crypto startup.

⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
ADDITIONAL INVESTING RESOURCES:
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤ ⏤
DISCLAIMER: This show is for entertainment purposes only. Before making any decisions consult a professional. This show is copyrighted by The Investor’s Podcast Network. Written permission must be granted before syndication or rebroadcasting.

[TheInvestorsPodcastNetwork]

We hope you enjoyed this episode as much as we did. Please let us know your thoughts in the comments section!

REMINDER FOR THE TIP COMMUNITY:
Please beware of cyber scams & phishing attacks. We have received reports of fake accounts claiming to be affiliated with The Investor's Podcast Network or posing as one of our hosts. Please help us report those suspicious accounts. We will never reach out to you for any business or investment opportunity. Stay vigilant!

[Joeswing]

Hope to hear about the Internet Computer Coin and the technology behind it in an upcoming episode.

[keenghost]

Demand for Stablecoin might also come from Liquidity Providing / Yield farming, which definetely give you more return than 7-10 % p.a. Likely expose you to more risk as well, so take that as you may.