seneca
@seneca
why can’t trad banks offer the same rewards on deposits that coinbase/robinhood offer? 0.1% vs 4%+ Is it purely regulations? FDIC? seems so off
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matthewb
@matthewb
they can but don’t because it’s one of the main ways they currently make money. take deposits, put a significant chunk into short-dated bonds for ~4%, and only pass along 0.1%. just need to keep enough cash around to keep things running.
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