Crypto won't be allowed to be used as collateral starting next week.
This restricts institutional usage of crypto in Tardfi and the effect is more widespread than you can imagine
As a result to protect their beloved USD, my conspiracy theory is the dollar is collapsing a lot faster than they expect.
Just so to put things into perspective:
The daily volume of the Eurodollar market was $14T a few years ago. (I couldn't find today's numbers.)
In comparison, BTC market cap is $1.3T, and that of stablecoins is about 160B.
Thus, the entire market cap couldn't be used as collateral for a tenth of Eurodollar transactions. Crypto is not in the same galaxy as currency.
I'm not sure how this affects @MicroStrategy $MSTR and their convertible debt loans. I might be a moron but those should be unaffected?
Seems like this may hurt more of the hedge funds, market makers and clearing houses based on the online chatter i'm seeing reacting to this.
The number one thing I’m sure this hurts is crypto exchanges or crypto companies who hold majority of their assets in crypto AND stable coins.
I sure even holding USDC or Tether cannot be used as collateral