Banking Disruptors and Insured Crypto Yield

Published on
November 27th, 2020
Duration
30 minutes


Banking Disruptors and Insured Crypto Yield

The Interview - Crypto ·
Featuring Robert Sharratt and Raoul Pal

Published on: November 27th, 2020 • Duration: 30 minutes

Robert Sharratt, managing director at Cresco Fin, joins Raoul Pal, Real Vision CEO, to discuss how crypto is disrupting the traditional banking system and how Cresco Fin is leveraging crypto to provide a higher rate of return on investor savings. Sharratt explains the approach Cresco Fin has taken to provide yield on crypto assets, while also providing insurance, making it comparable to traditional bank accounts. Filmed on November 23, 2020. Key Learnings: We are entering a new era of banking ushered in by blockchain technology. Many new companies are utilizing crypto infrastructure to provide enhanced benefits to their depositors. Providing insured yield on crypto assets may be the next major transition for both crypto and banking companies.

Comments

Transcript

  • TP
    Timothy P.
    28 November 2020 @ 17:16
    Can someone explain to me from RV why Raoul is shilling for XRP? I'd post this on the exchange, but the login function isn't working. I find this highly distressing that Raoul is taken in by this centralized crap-token.
    • dd
      diego d.
      28 November 2020 @ 21:46
      Because it rises fast in altseason.
    • TP
      Timothy P.
      29 November 2020 @ 00:58
      @diego - Just because its the cheapest plastic bag whipping around in the hurricane doesn't mean its worth anything outside a quick scalp. Raoul sounds like he's in love with this shitcoin, which makes me doubt his judgement. I thought only n00bs picked up pennies in front of the steamroller. Might as well trade OTC stocks.
    • dd
      diego d.
      29 November 2020 @ 15:49
      From what i read Raoul was looking at XRP, nothing wrong with research.
    • CA
      Chris A.
      30 November 2020 @ 20:43
      He says he is interested in it but doesn't own any. Isn't that a long way from "shilling?"
    • AS
      Anthony S.
      18 December 2020 @ 09:58
      stop with this childish talk, this is not twitter or telegram.
  • DL
    David L.
    8 December 2020 @ 20:07
    Invoice factoring? 3% return is garbage. Banks are charging 10-20% for that today.
  • RV
    Rodolfo V.
    7 December 2020 @ 07:53
    So... is he telling us that the Yield Curve would be purchase orders dependent???
  • Jv
    Jasper v.
    27 November 2020 @ 12:56
    Technology is not important? Did he just say that?
    • RV
      Rodolfo V.
      7 December 2020 @ 07:31
      Marketing guy.... "Its not about the features.. its about the benefits"
  • TG
    Tomasz G.
    27 November 2020 @ 17:00
    Celsius will eat them alive :)
    • CA
      Chris A.
      30 November 2020 @ 20:46
      Totally different business model. They make their money by purchasing receivables from businesses who want their cash faster. Then they create smart contracts with them and move on to the next one.
    • RV
      Rodolfo V.
      7 December 2020 @ 07:24
      How do they enforce the contracts?
  • DH
    D H.
    1 December 2020 @ 04:06
    I've actually dealt with Cresco in the past mostly on the FX side and they aren't anything special. I would love to be proven wrong but these are old-world finance guys trying to make a buck before their current state business model runs dry -- and I guess good on them for trying to innovate. Now, where they might have an edge is bringing some of the institutional money guys on board through their network so there's that...but as it stands they have no track record of doing anything in the crypto space but good luck to them. As someone else wrote in the review below: WAY too many buzz words without going into the meat.
    • SO
      Slavian O.
      1 December 2020 @ 21:52
      I work at CrescoFin SA in Geneva, Switzerland and we don't do FX. We are built on a blockchain stack. Not sure what you are talking about. We only deal with family offices located in Switzerland and you are obviously not a client.
    • DH
      D H.
      2 December 2020 @ 13:05
      @Slavian, Cresco London with Derek Mayne
    • SO
      Slavian O.
      3 December 2020 @ 10:30
      It is a separate entity with a separate business model, always blockchain native, not a transition from FX or anything else. Robert is a coder as well as a finance guy. We work with Aave and Chainlink and are listed on a decentralized crypto exchange. You can read more here: https://bankless.substack.com/p/institutional-money-managers-are. Overview video here: https://www.youtube.com/watch?v=oUhP1OPKaB8
  • CD
    Christopher D.
    1 December 2020 @ 22:03
    re SOFR, i think after repocalypse of Sep 2019, we dont want that market to set the rate.
  • MH
    Matt H.
    27 November 2020 @ 22:10
    Love it, Love AAVE but you guys should get Alex from Celsius Network on who have over $2 billion under management.
    • FB
      Fraser B.
      1 December 2020 @ 21:22
      Celsius is excellent I agree, I've listened interviews, he operates with low risk lending to pay the yield back to the depositors. He has a very good model, however your crypto is still lent out, no way avoid this. Same as Robert. Being a validator owning your own private keys is another option to explore. I think being spread in this space is smart and to keep the learning curve going.
  • JL
    JAMES L.
    1 December 2020 @ 00:02
    Lots of buzz words. You need a private side for banks. They're not going to put sensitive data on a public chain. That's why private/public hybridblockchains working with R3 Corda, IBM Hyperledger, and JPMorgan Quorum for the private side while providing a public side for transparency will work ... enter XinFin XDC Network hybridblockchain
  • JP
    Jason P.
    27 November 2020 @ 12:35
    Wait till the syndicates names realize they are short credit derivatives on single issuer credits. This is a credit arb dressed up as difi
    • CA
      Chris A.
      30 November 2020 @ 20:48
      Yes but he was using smart contracts to handle the settlement.
  • MJ
    M J.
    30 November 2020 @ 11:50
    Sounds like they take your cash and loan it out in the market for a higher interest rate (equivalent to loan rates), The only blockchain part is a "contract" written in a database, so administrative blockchain, or am I missing something? Probably getting around loopholes of needing a bank license by having a contract on a "blockchain"
  • SD
    Sebastien D.
    30 November 2020 @ 05:42
    Isn't it the opposite of crypto? Crespo Fin deals with stable coins, so it's dematerialized EUR/USD fiat. The company is taking out these digital EUR/USD stablecoin, to convert them to original EUR/USD. Then lend them in the tradtional finance system, basically sucking out liquidity out of crypto world to inject it in legacy system at 1-1.5% interests. Why not take USD/EUR depostis directly? Am I missing something?
  • MK
    Monty K.
    30 November 2020 @ 05:27
    AT LAST! Here comes the wider banking offerings to the crypto world. Welcome Welcome Welcome.
  • MB
    Michal B.
    27 November 2020 @ 16:14
    The problem is that the oracle problem hasn't been solved and is most probably unsolvable. Chainlink offers Schelling point game that means that people are betting on what they think other people will bet. That doesn't necessarily mean that what they are betting on is truth. Chainlink is fundamentally unstable if the value of the bet is higher than the value of the entire Chainlink network. Attacker just needs to find a bet that is more valuable than the attack on Chainlink and then he can make easily profit.
    • TP
      Timothy P.
      27 November 2020 @ 16:47
      Ding-ding-ding, we have a winner. This is also why "ETH 2.0" is absolute garbage. It relies on abstraction of authority and trusting what is ultimately a centralized node (scattered over multiple shards) to verify things. The reason these DeFi crapcoins are getting any traction is their low entry price (Chainlink at 12 USD per as I write this) and the ability to shift over to other tokens in some furious cross-arb trade. Its ICO's all over again, except with new terminology and reasons why you should take solid crypto and turn them into DeFi tokens for your "yield" - that promptly disappears when it retraces, or another hack drains all the value. No other space has lost as much money as quickly as DeFi has. Look up all the "oopsies" this space has had. Its truly frightening the hundreds of millions that have been lost.
    • NL
      Nikola L.
      30 November 2020 @ 03:13
      This is not my forte so asking genuine question.. Is Polkadot in the same category?
  • NS
    Ned S.
    27 November 2020 @ 19:05
    This feels like a paid interview :P
    • AF
      Andrew F.
      30 November 2020 @ 02:58
      Ya - I was trying to put my finger on this one too. The content was good and I learned something for sure. But I got the sense Raoul was not convinced. And this business about the yield curve seemed a little far fetched. But this is a good data point about how banking is changing, so I did like the content.
  • CA
    Chris A.
    30 November 2020 @ 00:44
    Amazing interview. It really moved my understanding of the utility of smart contracts forward.
  • DW
    David W.
    29 November 2020 @ 15:35
    I just came here to say, can we please have a deep dive on the FATC's travel rule/swiss rule and implications to all crypto (smart contract use case, global mainstream adoption, and yes price impact)? By all indications mnuchin is seeking to rush in new regulations before he's out so this is urgent. Jake Chervinsky level interviewees preferred. Thank you!
  • VA
    Vassilis A.
    29 November 2020 @ 14:02
    @Real Vision, at 27'02'' why did you guys edit out the coin Robert is referring to as what people are willing to spend as opposed to hodl?
  • JP
    Jeff P.
    29 November 2020 @ 13:04
    Robert comes sooooooo close to answering the “how it works” question but never quite gets there. I am still unclear on how they make money to enable them to pay interest on my deposit. It sounds like maybe their revenue comes from AR factoring?
  • ML
    Mehdi L.
    29 November 2020 @ 02:47
    Basically Robert wants to create Yearn for USD stable coins, and Curve.fI for BTC.
  • KL
    Kyle L.
    28 November 2020 @ 17:34
    What I learned from this video is that I know little about finance
  • MO
    Master O.
    28 November 2020 @ 06:01
    Raoul can you bring someone who can tells us about the lightening network? Thanks.
  • SP
    Stephen P.
    28 November 2020 @ 05:52
    Banking is already code, it’s just all centralized and proprietary plus the license to fractionally reserve. This is using blockchains and smart contracts for greater automation and breaking the existing oligopolies with a more honest set of models, hopefully. And all of the functionalities are disaggregated for a potentially more robust AntiFragile system that eliminates the central bank ethos of tails the bankers get bailed out and depositors take haircuts.
  • UJ
    Ulf J.
    28 November 2020 @ 05:24
    What I don't understand about BITCOIN is why people do not understand Bitcoin.
  • JS
    John S.
    28 November 2020 @ 03:05
    Raoul showed tremendous restraint by allowing Sharratt to continue spouting jargon instead of answering the questions. This is the first RV interview I experienced that did not add any insight. Fortunately, Raoul kept this interview as short as possible.
  • AD
    Alexander D.
    27 November 2020 @ 22:28
    So the very issues that the block chain and some of the different protocols solve, they hope to come in and "solve" for the massive institutions and charge fees for. This literally reminds of of an Austrian I know who would not work with less than a $1,000 per hour lawyer because if the person charges less than that they "are not competent". So I can get 6% from BlockFi or 3% from Cresco. They did not talk about the total limit of the 3%, and I know BlockFi's rates go down after the first 3 BTC or something, but this sounds off. This just sounds like a hunt for yield, but in a potentially unregulated industry, in a sub-optimal way.
  • BR
    Ben R.
    27 November 2020 @ 18:50
    Fantastic stuff!
  • LC
    Leon C.
    27 November 2020 @ 17:30
    Everybody hates banks, right! ............... 5 mins later So how do you return 3% ....... essentially, we act just like a bank!
  • Hv
    Hannah v.
    27 November 2020 @ 14:25
    As always Raoul. You blow my mind with the quality of your connections. Thanks for your years of study and feisty fresh attitude. I love the “money-shot” facial expression as yet another first-time concept dawns in your vast understanding. Reading Nouriel Roubini’s 1/n tweet thread this morning vs BTC’s stealth relentless omnipotent adoption across all demographics, cultures and usage applications. Truly the king cockroach of finance.
  • RD
    Rui D.
    27 November 2020 @ 14:08
    this guy strikes me as not answering questions straight
    • VD
      Vishal D.
      27 November 2020 @ 14:19
      yes, this was sketchy as hell
    • Hv
      Hannah v.
      27 November 2020 @ 14:25
      You missed the entire point of the discussion.
  • TE
    Tom E.
    27 November 2020 @ 12:30
    That was really interesting. Thank you for these insights.