YouSaid · the spoken record

Caitlin Long

lines on the record: 68
first: 2024-01-24
most recent: 2024-01-24
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Is the Bitcoin ecosystem has continued to fund venture capital investments? It's the non-Bitcoin ecosystem that's been in a real Of investments, and you guys have been able to raise fund too. I think you said. And that tells you something. Well, a lot of the traditional VCs are on the sidelines, the Bitcoin VCs, these are growing. I think that speaks volumes. Congratulations.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Thanks, Preston. Congratulations to you on your announcement today about joining Egoda Death Capital. Thank you. I can't wait to see what you guys do. It's great. One last thought.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And that's the punchline. And some are willing to pay higher fees for the transparency and understanding that their counterparty isn't going to rug them the way that the traditional leveraged model potentially could end up doing.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Even if the fees are higher, it's you know, in a way, it's kind of like the fractional reserve banking model, right? You got to pay fees. The bank has to cover their cost of capital and their expenses. But a lot of people don't understand that the no fee accounts, whether it's a no fee bank account or a no-fee fund through the fund management industry. There's a lot of risk on the backside that's not being properly priced.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, and I think it will divide the ETF sponsors in the future between those that want to stick with the old-fashioned games and those that are willing to play. With the Bitcoin ethos in mind. That we are giving up the right. Leverage ourselves and put our customers at risk. The traditional big Wall Street players probably won't go there, but you know, among those, what, it's 11 or 12 ETF issuers. Some of those are hardcore Bitcoiners. Some of those are not at all. They're traditional Wall Street. I can easily see that group splitting. In the coming years into one that really is committed to one to one.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Because you had to get the first V1 out the door. But what does V2.0 and V3.0 look like? Right. And this is where some of the tweaks, and that's where custodia can play. And let me kick it over to Wes to see if he has anything to add here because we've set ourselves up to be a different custodian and to the extent that there's an actual physical redemption someday on an underlying ETF. Boy, that would be fun. And we'd love to conceptually love to participate in that. Wes.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“But several others are. So there's like a giant divide now that the Bitcoin DTF has created within the asset management industry and within the wirehouse as the broker-dealers, whether they're making this available to their customers or not. Preston, I think what you just laid out is going to, we're going to have that divide among ETF managers down the road.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, you know, it's such a, there's such a fissure in the industry because we saw Vanguard went hard negative and some others are just not making these available to their customers.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Option, not the ETF issuers option. And this is where custodia is in a really interesting position because as long as we execute on our business plan, and again, look at who we've got on our team. Wes is the tip of our iceberg. He is as committed to solvency and being one-to-one backed. And you can see it, you can trace your actual UTXOs, proof of reserves that all of the requirements we have to comply with for the Wyoming laws, all that pre-exam work that we had to do, all the penetration testing, the proof of reserves, that's all codified in Wyoming law. We have to comply with it in the rules and regulations as well as the statutes and the supervisory examination handbook. That's all out there, right? So it's not just a best practice. It's something we have to comply with. If we could offer that, we would.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Oh, okay. Yeah. Yeah. So, I mean, and ultimately, see, this is one of the things that our product team would love to do. I don't know if the SEC will ever approve it, but an actual physical redemption from an ETF. It's not allowed right now. Technically, an ETF, there is a physical redemption option, but it's the issuer's option. So one of the things we may look at down the road is having a physical redemption option at the ETF owners”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And then he explained how he got out at a negative 38% return and why he's grateful for that. And it does precedent. It gets exactly what you're asking about. The fact that GBTC was trading at such a huge premium was the canary in the coal mine. Something's wrong. And a lot of people tried to arbitrage that and blew themselves up over it. And we're not done clearing it out. I think that this person explained that that's a big reason why the price dropped as soon as the Bitcoin came on Bitcoin ETFs got approved because you finally unlocked people who'd been sitting and losing positions and just wanted out of that widow maker trade. And we've got to clear a big chunk of that before Bitcoin's going to rally again. I don't know how much.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I was just going to say that was in retrospect the canary in the coal mine. There was also a really great thread about the widow maker trade. I'll get you links to these tweets because there were two people I'd never followed before. And sometimes, you know, Twitter is filled with, you know, it's a giant sewer sometimes, but it's got just great nuggets of information from people who know what they're talking about. And one guy came out and admitted he lost $700,000 on the GBTC trade and called it the widowmaker trade.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, good question. That comes back to are some of these Wall Street firms going to blow themselves up because they don't understand that there isn't going to be a bailout on Bitcoin. There isn't And so they better not get themselves too naked short. One of the problems with the ETFs, well, just how prime brokerage works is that they co-mingle and allow collateral substitution. So if you have a net short position and you get a margin call in that Bitcoin ETF, you're allowed to satisfy it with cash. Okay, that's fine. But, and this is what this guy's point was, that means that the short position in the Bitcoin ETS is just going to keep growing and that is going to impact the price of Bitcoin. It's not going to impact the quantity of Bitcoin. Now, the hardcore Bitcoiners, when I've talked about this kind of phenomenon in the past, they all say, well, that just means I can buy Bitcoin more cheaply. That's great. But it also means everybody's pockets being picked. And it also does mean that there is financial stability risk to some of the market makers. You're right.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Of the DTC that can keep rolling every 35 days. I mean, it's caused a perpetual negative position in this particular ETF he was talking about. And that may happen in the Bitcoin ETFs as well. I don't think that's a threat to Bitcoin. It's a threat to the ETFs.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I'm not afraid to call balls and strikes on the SEC more than, you know, a lot of folks just think the SEC is evil. It's not. It's definitely not done some things right. But one thing it did do right is it said on these Bitcoin ETFs, the custodian is not allowed to lend or rehypothecate in any way the underlying Bitcoin. So assuming that that is complied with, then where are the shenanigans going to happen at that layer two? So the layer two is the ETF. And there will be derivatives and other layers piled on top of those ETFs. And that's where the shenanigans will happen. And his point, and he is right. There are these kinds of things where there are market makers are allowed to issue more ETF units than they have collateral in-house just to facilitate liquid markets. Now, that's not going to be huge. That might be 5% of the float, but this continuous net negative in the CNS system.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“No, it's absolutely an issue. And there was someone over the weekend who brought up the DTC's continuous net settlement system and basically said, look, all you Bitcoiners who are chairing the ETF, you guys just signed your death warrant. And his explanation for that was that there will be, he predicts a perpetual naked short in the Bitcoin ETFs, just like there are for one of the S&P 500 ETFs. And the reason the DTC never closes out that position and forces the short covering is because these fault tolerances that I talked about earlier, and he explained, you can have a failure to deliver for up to 35 days. And you're just constantly rolling your failure to deliver every 35 days. And no one's ever calling the margin call. So one of the things the SEC got right.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And where have we seen that? I just laid it out in securities. Have we not seen the same thing in banking? And, you know, look, I mean, those of us who are intrepid warriors and these kinds of things, part of the reason I switched over from working on the securities problem to the US dollar problem is because I also realized we wouldn't solve the securities problem until we solve the US dollar problem. But actually the US dollar leg is one of the reasons why the securities industry is still T plus two days to settle a stock trade. Going to t plus one in May. But the biggest reason historically, well, in the last 10 years, was the US dollar piece was so clunky.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I was a I was really surprised. But it was classic, you know, that the big registered agents, there's one based in Delaware, very powerful. The previous governor was the one who was supportive of upgrading the IT system at the Delaware Secretary of State to allow natively digital registrations. It doesn't have to be a blockchain, by the way. Just anything that where you could make an API call to verify that the sheriff stock you're buying is legit. Then we could collapse all these layers and all these abstractions of in the securities system that prevent the system from ever being accurate and ever being in sync with each other. But they didn't want to do it. There were too many people making too much money off the old system that was inefficient.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And symbionts engineers, who are, by the way, Bitcoin engineers or early Bitcoiners went in and started looking at the integrations and guess what they found, Preston. They found that the Delaware Secretary of State's computer systems had multiple hackers sitting on the line and disclosed it to the state of Delaware. And in return, how did the state of Delaware react? They shot symbiont.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“A profound thought. Why is it that they're allowed to have all of these operational fault tolerances? And the answer is because the systems are never in sync with each other. So I worked on this. I don't know if you know this. I worked on this very problem. The first blockchain project that I worked with with the government was with the state of Delaware, the Delaware Blockchain Initiative in 2015 To try to get natively digital registrations of corporate stock. Know okay, and I'm gonna disclose something, I don't think I've ever publicly disclosed. I was working with a company called Symbion. It was the president of the company. And Symbiont was partnered with the state of Delaware for smart contracts. And they were going to use the Symbiont platform to do corporate registrations.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Or fed wire, you can do same day, but you can't program it. The problem is the DTC has a similar constraints on the security side. And it goes to the root of the problem, which is that corporations are registered in analog form. If we could get corporate registrations at secretaries of state to be done in digital form, natively digital, we'd solve all this because the easiest thing to do would be to have an API call to the Delaware Secretary of State's office to verify that the sheriff's dock that you're buying was validly issued. And instead, what we have is this all these layers of abstraction that create naked short positions inherently. Why is it naked short positions? Because the systems on Wall Street are never in sync with each other. Never.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Not we already have it, and it's through the DTC, they electronically settle debits and credits. But here's the thing. They're using old technology, kind of like the ACH system. You settle your US dollars in one to three days.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Opposed to just a speculative instrument, that it does move at the speed of light. And it is harder money than the fiat money that we're all using right now. And what is the impact of that? You asked early on, what's coming down the pike? I think that's a pretty profound trend. And I think her explanation of it is right. We haven't had the ability to move a commodity money at the speed of light until Bitcoin.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And so it had to just keep getting extracted away and abstracted away. And people just wanted the ability to move money quickly. And so the fiat money crowded out commodity money. Well, her thesis is the opposite is now coming full circle because Bitcoin is ledger money that's not controlled by anybody. It is better money. I know there's a huge debate as to whether it's money or not. I won't get into that. But if you just assume for the moment that it is a medium of exchange to at least some people.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And why is that? Because usually it's the good money that's crowding out the bad. Why is it that that happened? And her answer was that it was telecom. It was the ability for the data leg of transactions to move at the speed of light. And gold was money and that was limited to moving at the speed of matter.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's so interesting because on that topic, Lynn Alden has a really interesting observation in her book. You guys come from a science background as she does as well. And I love the way that scientists think about this because it was really profound her observation that what caused money to kind of morph in its definition 50 years ago was because we went to 100% fiat standard all around the world and we've never been there before. And it's the first and only time in human history that she alleges, and I think she's probably right, I can't think of an alternative, where good money was crowding out, bad money was crowding out good, where fiat currency crowded out the commodity money that was gold.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So now the question is It's risk free arbitrage. And that's what for the small banks. And that's what the Zero Hatch article was pointing out. They're not wrong. And so it's the analogy of the really steep yield curve that the Fed created, the Greenspan created in the early 90s to recapitalize the banks. That's what BTFP has done, to recapitalize the small banks, but it didn't work. And there was a massive bank consolidation wave. And I think that's probably going to happen again, Wes, do you agree with me on that?”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And so they were earning a higher interest rate on their longer term loans because the yield curve was steep than they were paying on deposits, which they were borrowing short-term. So they were doing their maturity transformation game, and the Fed gave them an assist by steepening the yield curve massively in that timeframe. The impact of that, though, Preston, was that the number of banks got cut in half”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Going to be a big deal, it's going to be a very big deal. Well, it's so interesting because if you go back to the 1990s, I started my career in 1994 doing bank mergers at Solomon Brothers. And there were twice the number of banks back then as there are today. There was a huge consolidation wave. Well, what happened after the late 1980s real estate crash? Greenspan engineered a really steep yield curve. And that was designed to bail out the banks indirectly. Why? Because banks lend along and borrow short.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Accused of being anything other than independent, I'll just state that as a fact. It doesn't want to be accused. But anyway, it doesn't want to necessarily sway the election in one way or another. And it's perpetually, this is a fact of history. Presidents put pressure on the Fed to ease during election years period. And I'm sure that that's one of the reasons why the fixed income market is assuming that interest rates are going to interest rate cuts are coming this spring. Wes, do you have anything to add on that?”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Preston, I don't know. I saw in that zero hedge article, they were tweeted out that March is going to be lit. And the March timeframe is going to be interesting. And to your point, overlay the fact that we're going to have a having in Bitcoin in April, that's going to be interesting. And then, of course, it's an election year, right? So you don't, you know, the Fed never wants to.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And what I would caution folks, you know, a lot of folks in the Bitcoin community assume that just because the Fed's balance sheet is expanding, that that means that hyperinflation is around the corner. Be careful. It does not. In these kinds of scenarios, when the Fed's balance sheet expands, they're filling the bathtub that has drained out, if you will. They're trying to prop up the total amount of credit in the economy and not have a debt deflation. And that's why it doesn't show up as high inflation or hyperinflation. when the Fed does these things.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“The Bitcoin happens in April, but I guarantee the Fed doesn't care about that. No, just the internal. Plumbing of the Fed is this is the reason why the fixed income market, when you add all this up, is assuming that there are going to be rate cuts. But what's fascinating is that if history is a guide, the rate cuts don't start until there's an accident somewhere.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And that without the Fed facility that was put in place last March, the small banks have less than $5 in cash for every dollar of deposit. And the large banks have had a lot of deposits flow from the small banks into the large banks. And they're now north of 12 cents. Again, Ponder how fast a bank run could occur at those banks. The Fed's going to step in and provide liquidity. That's its job, agree with it or not. But it is its job and try to stem bank runs. That's exactly what it did in March. And it did succeed. The question then is, are they going to be able to continue this? A lot of folks, if you look at March, basically the punchline is there are a lot of things that are lining up in March and the expiration of that facility, which had a one-year period. As you say, the Treasury General account, the reverse repo facility. And this is all.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, I'm looking at this and saying I'm not sure how the Fed is going to unwind the facility that was designed to stop the bank run on small banks. There's been a bank walk since then. I just posted yesterday a tart that was up in a zero hedge article and don't fully agree with everything in the article, but the chart was stunning and it's correct, which is that there has been a continued bank walk from the small banks.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“It's clear that when the deposit run occurs, as happened in spades in March of last year, that took down several banks for fairly large banks, Silicon Valley, First Republic, and then Silvergain and Signature, that if they weren't sitting 100% in cash, that those deposits could disappear very, very quickly. And it wasn't just the crypto industry's deposits. It was also just the tech industry's deposits. I guess nobody, it didn't occur to folks to upgrade the liquidity models for the fact that we could use one of these withdraw 100% of our cash through online banking intraday if we're willing to pay a FedWire fee. And that's what happened. So Wes, let me kick it over to you because you've lived this. You came from the banking world. Tell us your perspective.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Well, we saw it in fact at Wes's prior employer Silvergate, and Wes was working on the staple coin project there. So I'd be interested in his views, but it's fundamentally very simple. The US dollar system is designed, ACH settles one to three days. FedWire can settle in TRADE, but you can't program it to settle at a particular $1239 and 23 seconds, right? Something like that. You can't do. It's not programmable. Fed now is starting to get there, but the irony is that banks like us are blocked from using.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So here's a really interesting it's coming full circle, isn't it? It's not okay for the crypto native companies to be doing this. There's a big double standard because apparently. Big incumbents are allowed to do this, but others are not”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I did see that. You know what's fascinating Yes, okay. That is fascinating. I respect counterfeit a lot, have dealt with them in my career, my earlier career. You know they were one of the firms that was hardest hit by 9-11. Many of their employees died in 9-11. So I have a special place in my heart for that firm for having survived it. And 20 years later, still thriving. But what's interesting is Counterfit is a primary dealer. And that means because they're not a bank. I looked it up today. There's no Fed master account. They're clearing all those U.S. dollar payments for Tether, just like all of their other customers through a clearing bank. And I was looking to see who's their clearing bank. And I found one reference to one of their clearing banks being Bank of New York Mellon.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We have not done that. We don't have the final approval to do it. And again, we're philosophically asking for permission, not forgiveness. And given what the Fed said about us about stablecoins, banks issuing stable coins, we're waiting for some clarity on that before we proceed. But you know what's so interesting, Preston. We're recording this on the day that Howard Lutnick announced on CNBC during an interview at Davos that Counter Fitzgerald is the custodian of all of Tether's T-bills.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Deepening of the ecosystem. I'd love to hear Wes' views on this because we've got a hardcore group of Bitcoiners in custodia who are following all of it. And I think the deepening of the ecosystem eventually custodia wants to be able to offer layer two payment services. That's not to be clear on our approved roadmap right now, but we've talked about that. We're watching the Lightning Network very closely. And of course, we want to be able to go to international customers as well. Right now we're only handling domestic businesses as customers. But I'm really excited about the layer two opportunities in Bitcoin and especially for merchants that are using this for cross-border payments, especially Lightning. We're watching that to a large degree. And it is also publicly disclosed that custodia was approved as of the charter for issuing a stablecoin-like instrument.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“A securities lending model. We will not make those loans. Big difference. So Wes at Silvergate did that when Silvergate was a lending bank and was lending against Bitcoin as collateral. Custodia will not do that. We're a non-lending bank. But that doesn't mean if you don't want to get access to that that you can't, sure you can. That's the idea. It will just open up the integration to outside lenders and then you would direct us just like your 401k administrator directs the custodian of the 401k plan to do certain things. you'd have the ability to direct us to do that as your custodian it's very similar conceptually to this segregation in the securities industry that keeps a lot of the shenanigans from occurring”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Deposit in October. Why did it take so long? Well, it takes time to get an exam schedule. Then you've got to go through the exam. Then you got to get your letter. I wish it could have happened sooner, but it didn't. And that's okay because a bank is supposed to walk before it runs and is supposed to ask for permission, not forgiveness. And that takes time. You don't want to move fast and break things as a bank. So yes, the answer is we will make those services available through our platform to our customers at some point. Stay tuned. We have not gotten approval to implement those yet, but it is on our roadmap. And we will be deepening those offerings, as well as providing prime services. That's another thing that's publicly disclosed. Same thing. We're just talking now about transactions services, basically integrations into the exchanges. There will be integrations into the lenders for those who are interested in”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“But the platform has an integration into those services. So that, yes, we are approved by the Wyoming Division, but he it is public information as part of our charter hearing that our business plan at charter did include those. We don't have any announcements for anything yet. Stay tuned. As Wes said, we're walking before we're running. And as a new bank, one of the funny things is it took us a long time after we applied to start Bitcoin custody to get the exam scheduled much less done. That in and of itself, we disclosed that we applied for Bitcoin custody in April and we took our first”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We're going to be offering trading services. So we talked a little bit earlier about the segregation of asset management and custody. I believe in the segregation of custody and trading as well. Because a lot of the shenanigans that have happened in this industry happened because there was a combination of custody and trading. And so institutionally, again, any fiduciary is going to have to segregate those functions. And so that's what we've built. We do not want to trade. We are not traders. We will offer integrations to exchanges and platforms that will provide trading services, but we will not be the trader ourselves. It's in a way, it's kind of, it's like, you know, Bank of New York or State Street in the securities custody business being plumbed into the New York Stock Exchange or a Nasdaq or all the different trading venues, but they don't trade themselves. If you want exchange services, you go outside of the platform.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Definitely where we are right now. Two caveats one is check our website because not all services are available in all states and have to give the obligatory disclaimer that our deposits are not FDIC insured. So definitely.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Occurring And hell, I mean, it's obvious that if FTX had tried to become a U.S. entity, that all of the fail safes that apply to regulated financial institutions, even to money transmitters in the U.S., would have caught the fraud. And the fact that it was offshore and there haven't been authorized onshore parties is part of the reason why FTX was able to perpetrate the fraud that it did for as long as it did. But can we hand it over to Wes and he can talk? About the technology”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Wes talk about the platform because this is very cool and it's the kind of thing that prevents The shenanigans, we're talking about right now.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“That FTX was the exchange, that I was handing evidence of probable crimes over to law enforcement. I came into possession of that evidence from someone who was able to get into their private chat rooms and came to me with it. I didn't even review all of it once I reviewed a little bit of it and understood, oh my gosh, this has to go to law enforcement. I handed it to law enforcement. So there's a double irony of the timing and all those references to FTX because I think it's safe to say that federal regulators in Operation 2.2.0 tried to paint everyone, including the law-abiding parties with the same brush as FTX. And they ended up sweeping out someone who was actively working with law enforcement to clean up the fraud. I am floored, and as a side note, at the attempts to rehabilitate Sam Bankman Freed, I knew all along that was a criminal enterprise.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“There is one thing that I can add because you brought up FTX. I had publicly disclosed that I had been handing evidence of probable crimes over to law enforcement. In summer 2022, about one of the crypto frauds. It is now publicly disclosed in some of the documents that you just read apparently in preparing for this.”
2024-01-24 · We Study Billionaires · BTC166: Bitcoin Custody For Institutions w/ Caitlin Long and Wes Knobel (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT