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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tombornal
@tombornal
cuz actual banks need to maximize spread of their cost of funds (interest to depositors) and use of funds (interest bearing loans) coinbase and fintechs arent banks and can’t lend deposits, they make their money elsewhere, and can take slimmer/no profit on net interest margin
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