We can draw many lessons from the GFC of 2008-09. Before everything crumbled, the so-called global banks, too big to fail, lent out money to unqualified borrowers and because they couldn’t pay back their monthly obligation, the house of cards fell, pushing the global economy into a recession. Six weeks later, we had the Bitcoin whitepaper, and it has been a roller-coaster ever since.
Now we have CoinBase. A centralized cryptocurrency exchange that now supports Ripple (XRP) after years of turning the other way despite apparent demand from customers. However, CoinBase is more than a bank. Under the NYDFS, the exchange is also an approved and Qualified Custodian. In their agreement with the stringent state of NY, they can “store large amounts of cryptocurrency in a highly secure way,” list new assets and even experiment with staking which the exchange is piloting with Tezos.
Furthermore, they are facilitating cross-border payment to countries like India using Ripple (XRP) and USDC for free as long as the receiver as a CoinBase account. All this is after raising $300 million in Serie-E funding, money they didn’t need, said their COO, Asiff Hirji.