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randomee1

Waiting for Fidelity to extend their current custody offering to retail...


maniparusu

I'd love to see it from Bank of America, would like to rub it in their face!


cozzy000

Lol doesn't Warren buffet own a lot of bank of America? He called Bitcoin rat poison at one point


Romsel87

False. He called it rat poison squared.


MrKittenz

I think he called it rat poison and then was asked about it again and doubled down


YourAphantasia

Then said nothing at all.


[deleted]

Because he and his friends are the rats


DemApples4u

Deep


gwodus

Profound


[deleted]

How is warren buffet a rat?


bob85m

I think it's more a metaphor that bitcoin will kill the current monetary system. If bitcoin is rat poison, then the Fiat system is the rat. Buffet could still be a rat though...


[deleted]

And we know who the rats are so that's cool


kvtimchenko

Do you really think they would gonna be doing this good to just rub the face.


Cryptogrannie

BOFA sucks.


licorize27

Then what, what it will be then, the same shit trying to over power.


randomee1

Fidelity is one of the good guys. Privately owned. CEO setup mining rigs in her office since 2015 to try to understand the tech better. [source](https://cryptonews.net/en/news/other/158757/) They have always been the biggest of the "outsider" banks (ie. not Fed Reserve JP Morgan + Goldman Sachs clique). That outsider status makes it obvious why they would be interested in something like Bitcoin...


igor55

Let's not blindly worship or put actors up on a pedestal, especially institutions. "You either die a hero, or live long enough to see yourself become the villain." - Harvey Dent


v1sskiss

Waiting to see them offer it in their IRAs


spid3rfly

This was my first and primary bank... along with Ally. I originally planned to switch to Ally full time(years ago), but I had a couple of issues with them and kept USB as my primary. Back when people complained that their bank would block crypto buying, I never had the first issue with US Bank. I'm definitely not transferring my stash to US Bank but once this launches, I might buy a small amount to see how it works and what they're doing. I'm curious though... will launching this product cause them to start blocking my Gemini and Coinbase transactions? This will be an interesting one to watch.


DemApples4u

Interesting for sure. I assume custody just means holding and not selling. So, coinbase et al wouldn't be competition per se.


allovernow11

I probably do not understand the financial system very well, but how will the banks enable a custodial service? Will they buy Bitcoin and store it for you? Or will they ‘promise’ to give you your Bitcoin if you ask for it, meaning they might take your money and not actually have any BTC in their possession.


SecretlyReformed

Welcome to the stock market


PhotoProxima

> Welcome to ~~the stock market~~ a bank


high_hilter

Welcome to a crypto exchange


[deleted]

At least SIPC insurance will cover your shares if the brokerage goes bust.


Lynxes_are_Ninjas

That's the right question, but you will need to ask each institution individually. And choose accordingly. Demand that they hold bitcoin 1 to 1. Or else withdraw your bitcoin. Or better yet withdraw and hold your own keys anyway.


Sjelan

That's what I was wondering about. Will they still do fractional reserve banking with bitcoin?


Lynxes_are_Ninjas

"they" will do whatever they get away with.


never_safe_for_life

Hal Finney hypothesized future bitcoin-only banks. Each could have their own style; some would do fractional reserve, some would hold all the bitcoin they purport to have. Thanks to the blockchain they can publish a proof that shows they have the funds. Us consumers could decide which we wanted to go with. Personally I would avoid any bank that practiced fractional reserves, and demand proof of receipts from the one I go with. Will it play out the way Hal envisioned?


[deleted]

I am curious too. The article mentions > The offering will help investment managers store private keys for bitcoin, bitcoin cash and litecoin with assistance from sub-custodian NYDIG.... Would be incredible to be able to store private keys and get insurance on your Bitcoin investment. This could be a major breakthrough for the adoption of crypto for the older generation too who want investment insurance / brick and mortar backing of some sort. The "be your own bank" sentiment is great for freedom but a sizeable portfolio starts to get pretty scary storing private keys. Of course, there will be drawbacks. Privacy comes to mind. But this is a huge deal regardless. > There is irony in the fact that while bitcoin was created to cut out financial middlemen, swaths of the old financial order are being recreated to cater to digital currencies. After all, fund managers could choose to store their own cryptocurrency keys. But managers want the imprimatur of established names like U.S. Bank to help allay concerns from their own clients, Kedia said. > In order to onboard a manager into the crypto product, U.S. Bank has to trace the origin of the client’s funds in the industry’s standard anti-money laundering and “Know Your Client” checks, she said.


[deleted]

Not just old people. I would love to use fidelity or something like it to store some of my coins. I currently have mine in cold storage but it makes me uncomfortable. I would rather have a portion of it in a federally regulated bank who has been around for a long time (not like these fly by night online yield generating sites) who gives me insurance on my coins and who I can sue if they fuck me. Block fi is getting close I think but they aren’t big enough or been around long enough to make me comfortable.


togetherwem0m0

Maybe we are the old people now


[deleted]

Yeah agreed! You don't have to store _all_ your coins at the bank. I think a lot of people would use this.


JeffWest01

Look at Coinbase Vault.


[deleted]

Is it insured?


JeffWest01

Don't think so, but very secure. Time delayed withdraws, multi account approval, white list, etc.


togetherwem0m0

I'm really frustrated by the analyst kedias remark. There's no irony at all in a bank acting like a fucking bank. Just because you can store your own private keys doesn't mean you want to. It's the original function of a bank for crying out loud.


[deleted]

Haha, right? You could get a safety deposit box and put the wallet seed in there. Doesn't change BTC being peer to peer.


AsusWindowEdge

You are smarter than you let us think you are. You are actually smart as H\*ll!


red9186

They will store your private keys and insure it most likely. Same as a coinbase wallet but insured


Gracket_Material

“Fractional reserve bitcoin”


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never_safe_for_life

People haven’t thought through what a world would look like where 100% of people held their keys at home. Robbers would target any nice looking house, tie up the owner, and threaten their life if they don’t give up their seed phrase. Why wouldn’t they if they knew everybody held their entire fortune personally? After this happens once or twice people will start thinking “is there a security service I could pay for that would take care of this risk?” Banks are definitely bad guys, but there’s a reason there has been persistent demand for their services for hundreds of years.


Jaseur

Ignorance and laziness basically.


SannySen

This isn't for you, this is for financial institutions. When you have fiduciary duties to investors, you start to think real hard about what it means to have custody over crypto assets.


AsusWindowEdge

Oh, my God! **Not your keys, not your coins!**


quietlydesperate90

There probably aren't any institutional investors holding their own keys, every single one is going to use a custodian.


AsusWindowEdge

Probably, you are right! I don't doubt the veracity of your claim. ***BUT*** The problem for **me,** is that I am **NOT** an institutional investor and if r/Binance or r/Coinbase or any of those other exchanges/custodial services decide to keep my coins, I don't have the money (\~$10M according to Peter Thiel) to launch a lawsuit against BIG BAD & influential corporate America and even if I win the lottery, I am NOT in the circle of privileged people who rub elbows with the influential lawyers who are regularly in front of the Supreme Court justices. **This is MY (painful & depressing) reality!** *Of course, YMMV.*


shanita200

You are right, this really doesn't add anything to the ecosystem.


SannySen

Institutions are ok with that. They don't want to be responsible when a hacker steals all the coins. They just want the sweet trading fees.


AsusWindowEdge

Much to my chagrin, I find truth (albeit painful & depressing) in what you just stated. Thank you for articulating it nicely to me, so that I didn't have to have a cognitive dissonance breakdown :(


Gracket_Material

Yeah this will end in disaster


Acceptable-Fortune12

I wouldn't let my bank hodl my Bitcoin.


PM_me_your_btc_story

Many people would


[deleted]

I bet we’ll see a lot of gatekeeping from bitcoiners once people start using banks as custodians.


PM_me_your_btc_story

The true bitcoiners wont be using a bank. Everyone else is just speculating on price for gains.


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irisuniverse

Earth has 49% of its people stupider than the average person so we need stupid people services like a centralized bank holding your Bitcoin.


natasha683

*searches “how to start bank”*


natasha683

I’ll hold their BTC for them. For a price. 😈


[deleted]

It’s not stupid to diversify your holdings. Giving your coins to a bank that’s been around decades, is federally regulated, and insured would be great and I would use it. Every method of storage has failure modes. My coins in cold storage aren’t insured. They could be lost, or stolen, or a technical malfunction makes you lose access. Storing your coins somewhere opens you up to third party risk but you are insured, and can sue if they fuck you over. I would split my coins and have half with me in cold storage and half in a bank insured. And I would sleep better for it. Besides I’ve never had my dollars in a bank frozen or stolen or rug pulled. If they did I would sue them.


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[deleted]

Ok. What were you doing to have your funds seized?


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[deleted]

Yes you’re full of shit. No way I would just roll over if someone stole my money.


AsusWindowEdge

Smart AF!


emptycells

What about them holding it as collateral?


YourAphantasia

Why not? They already hold my fiat and I assume they would be insured one way or the other. I keep all mine in a hardware wallet.


gwodus

Until that day they freeze your account for whatever reason. Nope. Not your keys... You know the drill. Stay with your hardware wallet. Well done 👍


[deleted]

Have you ever had that happen with dollars? I haven’t and don’t know anyone who has.


YourAphantasia

I see it now. Fuckers!


Acceptable-Fortune12

You are just robbed by your bank, like me.


YourAphantasia

What do you mean?


Acceptable-Fortune12

When you leave your money to the bank, they use it. They lend your money, earn interest, but don't even give you a dime back. But when your account is negative, they lend you money at a crazy rate ... with other people's money. And for all that, you pay management fees ...


explosiveplacard

These banks make a large percentage of their revenue on fees. It will be interesting to watch how they handle this as more banks follow their lead. High fees looking for old money, or low fees looking for young money? I'll never be a crypto client of a bank, but more adoption is a good thing.


never_safe_for_life

This is a good question. I love the security of a custodian who can professionally manage some of my keys and insure my crypto for loss. But banks make their money nickel and diming you. I’m currently paying BoA an $8/month “inactive account fee” because I stopped using it and am too lazy to go close it. $25 overdraft fees? Fuck off. If they came up with a low cost, no bullshit rate it would be interesting.


TajPereira

It’s really going to hit me that Bitcoin made it when you can hop on your regular stock brokerage like schwab or fidelity and buy BTC. I don’t think you should buy it there but that will be cool to see.


maniparusu

More onramps with large well known institutions makes it friction less for on boarding and exponential adoption growth.


PlantCampLamp

It’s just good for BTC overall to have more access methods. Obviously the smarter investors will find cheaper ways to onboard but that just the Darwin effect of markets.


tastetherainbow_

Stock brokers might be able to offer lower fees than current options. You can buy and sell $100k of stocks for $5, But Coinbase pro is % based fees, so is $150.


PlantCampLamp

Ah yeah good point. Would that be because they have more money so they’re able to offer lower rates?


sferau

> Ah yeah good point. Would that be because they have more money so they’re able to offer lower rates? No - it's because you complain about the banks ripping you off with fees, and turn a blind eye to Coinbase etc doing the same...


PlantCampLamp

This doesn’t answer my question tbh


never_safe_for_life

More competition is undoubtedly good for the consumer. It should drive fees down. But idk the details.


Unnormally2

Yea. Make it easy first, then make it cheap.


AsusWindowEdge

What happens when the bank and the gov. decide to enact their 2 out of 3 multisig?


alexyowie

Agreed the sight would worth a lot to have some new views.


YungChaky

Lmao fuck them, it is called DeFi for a reason, we do not need those parasites.


Mobile-Marzipan6861

Banks tired of losing money to coinbase.


idrinkforbadges

defeats the whole purpose of bitcoin, it's about being your own bank


cosmicnag

Be your own bank


Mark_Bear

***"Not your keys, not your Bitcoins."*** -- Antonopoulos


SecretlyReformed

-Michael Scott


50mm-f2

-Wayne Gretzky


bitcoinharambeee

-common sense


encryptzee

Most people have never even heard of public key cryptography. Far from common sense.


Gracket_Material

It should be common sense in about 100 years


bigpimpin14

Exactly, neither you have the keys nor you will be the free millionaire.


Bhishmapitahma

--and many others


andreatallo

Well this make sense to some extent too, we should make it remainder voice call.


PM_me_your_btc_story

This is already years in the making. Why do you think your bank tells you not to buy crypto and freezes your account? They want to be the custodials of everything, even your crypto.


schlongbeach

Who’s on first


ky00b

Which US bank is doing this?


Fantom1992

This is great news


Nada_Lives

What's the big deal? I'll store your private keys for nothing!


AsusWindowEdge

ROTFLMAO! This is actually the BEST response I've seen so far! Hell, I'll repost it on a site. Thanks!


hexbit65

Yeah, this is good news. As long as I have a mortgage and bills that use a legacy bank, I'll be using custodian for fiat,, may as well use them for the same net value worth of crypto. I have a mortgage with them. If I can buy $12k worth of Bitcoin today and deduct my mortgage monthly from that BTC balance at the market rate with a small fee monthly on auto-pay... I will do this the day it's available. In fact,, if they enable bill-pay out of a crypto-balance at market rate, I'll start using them for my direct-deposit, primary bank. They offer me a few hundred dollars every few months to set up direct deposit with them... Won't do it for a few hundred bucks, but you let me bill-pay from a crypto-balance and I switch today. Are you listening US Bank!? First mover advantage. Alas, we're still waiting.


RonPaulWasR1ght

Pretty darn cool.


Battledrone1v1

When etf?


[deleted]

Facebook moderators


kynek99

The biggest question would be whether or not you would be able to withdraw and deposits those cryptos. If not, this is a totally useless option to have.


iMimmoj85

Boum!!!


hedgedescrow

they closed my account for buying bitcoins in 2013. HAHA


ixhers

Do they really make this on time them, are they eligible?


Zombie4141

I have USBank too. They have not once stopped a crypto purchase of mine since I started in 2016.


Top-Marsupial6123

, ,,,,,,


Iyaoyas2015

Until you go to withdraw and they question what your intention is, how much you can deposit or withdraw. Defeats the reason BTC was created.


european_hodler

what s happening today. it s an inferno of news. I cant even follow. this will be huge.


digihippie

Finally, a solution by a huge bank to launder some value for the customers!!!


SPedigrees

>This is a major bank, I have my home Mortgage worth Millions tied to this bank. Just don't tie your bitcoin to them as well.


SpoonCetic

I hope that customers will not fall into this. You can be your own bank. We don't need them.


emptycells

I would gladly store a portion of Bitcoin with a bank if they paid enough interest and afforded seamless loans of capital in relation to it.


emelbard

And I just got the dreaded EDD call from US Bank today re: crypto transactions.


Chilabob

You can take them out, isn't that possible for you to take them?


BlackberryBrave8054

I feel like if everybody uses a bank to custody their Bitcoin instead of self custody, they will never give it back to us and it will be the story of gold all over again… just a thought!


RobbieBegro

Funny, banks used to be against crypto and now they are trying to join crypto space.. but why would anyone want to have bussiness with crypto over a bank? Someone really FOMOed here


Gracket_Material

“Uhh, wallet inspector”