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Cam Stromme
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xpub importer/exporter at @unchainedcap. #bitcoin, petroleum, and beef for a prosperous society
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Cam Stromme
03-06
I was as surprised as anyone that Kraken was granted a Federal Reserve master account this week. I was even more surprised that it was Kraken and not Coinbase so I dug into it. I assumed that if any company would be first through the door it would be Coinbase because --they're publicly traded --they're the custodian for ~80% of all BTC held in the ETFs. --CEO Brian Armstrong spends a lot of time with Trump in DC And yet Kraken emerged the victor. Why? Because Kraken made a strategic decision years ago that flew under the radar. They set up Kraken Financial as a Wyoming-chartered Special Purpose Depository Institution, a bank charter specifically designed for digital asset companies. That structure is what qualified them. The Fed's framework requires a depository charter to even apply. Coinbase operates as a money transmitter in most states. They never built that structure. Political connections don't get you a Fed master account. The right legal structure does. This is a pattern worth paying attention to. The companies building the right infrastructure today, before the market demands it, are the ones who will define the next era of Bitcoin financial services. At @OnrampBitcoin, we've been operating from the same conviction. Multi-institution custody isn't just the best custody solution available right now, it's the end state. It's the architecture that serious Bitcoin holders will look back on and wonder how they ever survived with anything less. Kraken saw where the regulatory infrastructure was heading and built for it years in advance. We've done the same with custody. The long game is the only game worth playing.
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