pull down to refresh

How and why would bitcoin treasury companies become neobanks?
1861 sats \ 10 comments \ @k00b 9h bitcoin
Someone floated me the idea that Saylor aspires to turn Strategy into a neobank. When I asked him what made him think that he cited a friend's reasoning in a private "cypherpunk" group chat.1 He couldn't recall the details but said it convinced him that was Strategy's strategy (and represented a level of hubris that would be Strategy's ruin). Then I saw this sloppy article which validated the idea a bit.
I can't make heads or tails of it. My hope is someone here can.
  1. How does a large bitcoin treasury give you a competitive advantage when starting a bank?
    • Having lots of money is an advantage, generically, but is there something more to it than "rich people can start banks because banks are mostly just expensive to start and run"?
  2. Why would a bitcoin treasury company want to be a bank?
    • I imagine they'd be able to fractionalize their treasury for lending, somehow using their own bitcoin as collateral in some part of the process, and effectively generate yield on their bitcoin while getting closer to the money spigot.
    • I imagine they'd also attract deposits which they could use to buy more bitcoin, while their liabilities are priced in fiat.
  3. How would Strategy transition itself to a neobank? Would it acquire an existing bank or is it easy to spin up a bank these days?
Does anyone have any more insight into this kind of thing? Or have you seen any public writing to this effect that you could share?

Footnotes

  1. I was also immediately disappointed that this wasn't shared as a post on SN at some point. It sounds like a banger. ↩
write
preview
related posts
100 sats \ 0 replies \ @DarthCoin 3h
Saylor aspires to turn Strategy into a neobank
I've said that long time ago and multiple times here on SN and also provided the video in which Saylor mention that specifically.
Michael Saylor say it very clear: he will buy all bitcoins available, will HODL them and later will lend them as collateral to all poor guys that today do not want Bitcoin. In plain sight you have the banksters and billionaires plan: to enslave you again in debt. If you still do not understand that, means that humanity deserve to be forever enslaved by few…
and here is the video:
reply
121 sats \ 1 reply \ @justin_shocknet 8h
A lot depends on how we define neobank... Investment? Commercial? Depository? Payment processor? Exchange 👀?
Also we can't project the future by speculating on Saylors vision or hubris/lack of. Too many external forces will be exerted on something of Strategy's scale, that it will eventually become high time preference. Every temple falls.
... So Saylor has spoken about the importance of network effects in finance, MSTR options market for example having no peer... His head start on the fixed supply future financial system automatically gives Strategy network effect for whatever it feels it has to pursue in the future
If equities get tokenized and regs relaxed, MSTR stock becomes indistinguishable from a fake L2 and therefore a payment rail. It's other tranches become stables or interest bearing accounts... Very bankish.
These shittokens also need an exchange, and exchanges make a killing with fake layer 2s already... Imagine boltzexchange/side swap fees on strategy volume.
Being headquartered outside of DC and connected to the IC, whatever changes to regulation are coming they're ready for. Even if they have to buy a banking license by buying a bank, they're in a better position to monetize it than most.
reply
0 sats \ 0 replies \ @DarthCoin 3h
A lot depends on how we define neobank
Are all scams
reply
200 sats \ 0 replies \ @Undisciplined 8h
I've seen this idea mentioned as though it were common knowledge, but I've never seen a description of how it would work.
It's no even remotely easy to start up a bank.
I recall from my history of money reading that goldsmiths were amongst the earliest bankers. The reasoning here might be somewhat similar. They were the ones who were accustomed to handling large amounts of gold and storing it securely, so people started paying them to use their storage facilities. Then, they started (over)issuing redemption notes, which circulated far more broadly than the physical gold would have.
reply
21 sats \ 0 replies \ @dough 7h
I could see them taking deposits and offering collateralized lending at very attractive rates
reply
10 sats \ 0 replies \ @flat24 7h
I regret not add information or some really important data in this fantastic publication.
What I can contribute, is what I think when you see all this uproar with the companies that begin to add Bitcoin to their treasury, with this that the banks accept Bitcoin as a collateral for loans.
  1. These companies will cause the next bubble, which then unleashed a good price discount. (Bear market, or the respective setback of the fractal major bullish)
  2. The banks and Governments have already assumed that they cannot overthrow Bitcoin. So now they plan to get as much as possible.
reply
0 sats \ 1 reply \ @bitcoingraffiti 10m
E.g. he just launched $STRC. This is a 9% APY monthly dividend fixed income product.
Basically you can hold this risk free in your brokerage account and just receive the interest, not much different than saving at a fiat bank.
Fiat banks could even offer their savers a 5% APY monthly interest by parking their money in $STRC, earning the spread.
So indirectly, MSTR is already a bank. You won't park your Bitcoin with Saylor, but your fiat.
reply
0 sats \ 0 replies \ @nitter 9m bot
https://xcancel.com/saylor/status/1947392236536070317
reply
0 sats \ 0 replies \ @5atoshiNakamoto 4h
Of course Strategy will become a bank of the future. Bitcoin is money. Right now, these Bitcoin treasury companies are novel because this is a new concept for money. But in the future, saying you're a "bitcoin company" will be like now saying you're a "money company". Every company everywhere will be using Bitcoin, so the options for how Strategy wants to use their massive amount of Bitcoin will for sure lead them into becoming likely THE largest bank of the future.
reply
0 sats \ 0 replies \ @Macoy31 41m outlawed
stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.