The good side is that they buy bitcoin and thus make it easier for big players to buy directly from them without going through the platforms.
You're right, but I have mixed feelings about the "insured custodian" part... I have limited knowledge about such services but I'm assuming there'll be added fees [since we're dealing with big players here, that would probably result in significant fees] and in addition to that, If something bad were to happen, how are they going to pay back those amounts [e.g. its value/worth at the time of the purchase or something else]?Perhaps the problem is the intention of the Fintonia Secured Yield to provide direct loans to holders of Bitcoins.
They did mention not "rehypothecating the BTCitcoin collaterals" but that seems too good to be true!Yeah I don't know much about it myself but I'm sure it's going to end up as BitGo being their licensed, insured custodian. There really isn't anyone else as good or as insured. This doesn't really mean much for them though, it only gives them the best of what's available.
My guess: Fintonia wants to be the Southeast Asian NEXO. Do OTC trading for up and coming whales, while deriving physical BTC from lenders, and paying them interest from the fees they'll charge to the buyers.
Note that NEXO, via Bitgo and insurers, already have ~$350 million insurance coverage but that doesn't even cover 1% of total assets under management.
