Does anyone have a good idea of #[0]‘s business plan for Custodial bank?
Is the plan to get a bank charter and then be a full reserve bank with zero rehypothecation?
Or will they use their banking powers to print money from nothing to create loans for crypto companies?
As I understand, it would be a full reserve bank. I think they also want to offer on/off ramp for Bitcoin. But I am not an expert on this.
I think it is a fully reserved bank where the depositors would pay a small fee to have their money there and in return your money is not rehypothecated. If the FED allowed this bank then the chances are that it would cause a bank run on all the fractionally reserved banks as trust in them breaks down
