Money Without Trust
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Bitcoin held in self custody is unique in its lack of counterparty risk, as global market chaos unwinds this will become much more obvious.
The four main banks of bitcoin and “crypto” are Signature, Prime Trust, Silvergate, and Silicon Valley Bank. Silvergate and SVB have already stopped withdrawals. More banks will go down before the chaos stops. None of them have sufficient reserves to meet withdrawals.
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We live in a special times to be on the right side of this trade, may satoshi bless us!!! 😸
can't wait for it all to collapse. 100k party invite me asap
Nightmare in realtime
Isn’t any self custodied asset free from counterparty risk?
I took your advice and moved what I could Prime Trust to my cold wallet.
Prime Trust is apparently still servicing Swan. Whichever banks service Strike in the US still seem operational. Are these 2 primary on/off ramps in imminent jeopardy? #[1] #[2] #[3]
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Just FYI. Robinhood uses the following banks...
Goldman Sachs Bank USA
HSBC Bank USA, N.A.
Wells Fargo Bank, N.A.
Citibank, N.A.
Bank of Baroda
U.S. Bank
50% and counting...
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I hadn't thought about this aspect.
A fractional bank dealing with Bitcoin is bound to not have enough funds.
It's just like two different metals touching, one of them will rust.
In this case its the one that needs trust
Lump summed my DCA cash today and moved what little bit I had on an exchange to self custody. Will sleep like a baby tonight.
Could this affect the Bitcoin custody arm of prime trust? If so, how?
If they were buying Treasuries when long term rates were really low, they'll be sitting on massive losses to principle right now. If they used the Treasuries as collateral /margin for other investments, they're in trouble.
