I don’t understand why SAB 121 wouldn’t be satisfied by not rehypothecating or selling deposited bitcoin.
I get it that if I deposit $100 worth of dollars the bank doesn’t hold it, they buy something with that money. But with bitcoin I would expect bank to be a mere custodian, not the owners of the bitcoin with debts to depositors denominated in bitcoin.
That really would be a huge drag on the bank’s return on assets / capital. That model only works when you’re charging fees for service, a la Custodia Bank. Doesn’t work if you don’t charge for holding deposits, checking, service fees, etc
Not directly related to SAB 121, but in terms of two opposing views on future Bitcoin yields / banking etc., I really enjoyed this conversation between nostr:npub1gdu7w6l6w65qhrdeaf6eyywepwe7v7ezqtugsrxy7hl7ypjsvxksd76nak and nostr:npub15dqlghlewk84wz3pkqqvzl2w2w36f97g89ljds8x6c094nlu02vqjllm5m late last year. And despite Michael getting a little upset with Saif’s rock solid reasoning and view, they wrapped it up cordially like the men that they are.
