Episode 44 of season 4 of The Scoop was recorded remotely with Frank Chaparro of The Block and Bill Barhydt, CEO of Abra.
According to Bill Barhydt, CEO of Abra, as the crypto market matures, owners of “pristine” digital assets will increasingly be able to use their holdings as collateral for a range of financial services.
Founded in 2014, crypto wealth management platform Abra closed a $55 million Series C last September led by IGNIA and Blockchain Capital.
In this episode of The Scoop, Barhydt explains why the recent Terra Blast has no impact on the disruptive potential of crypto, and how a new wave of crypto financial products promises to unlock more utility for long-term holders.
As Barhydt explains,
“Most banks won’t recognize crypto – I don’t even know of any that will recognize crypto when trying to determine your financial status, when trying to qualify for a mortgage…”
Last month, Abra announced a partnership with Propy, the company that sold a house in Florida for $650,000 using an NFT – allowing crypto holders to apply for loans using their crypto as collateral.
While Abra “isn’t financing homes yet,” allowing long-term crypto holders to use their digital assets as collateral for down payments on property is a sign of maturity for the asset class, according to Barhydt.
If crypto can become pristine digital collateral as Barhydt imagines, he believes the implications will be felt around the world:
“The banking system knows I have that many bitcoins, it lends me that amount of money to make my payments, and it’s debited later – it’s a much more efficient way to process credit transactions in countries where there is no credit scoring system, which is most countries, so having some kind of digital guarantee changes everything.
During this episode, Chaparro and Barhydt also discuss:
- Decentralization and systemic risk
- The importance of research before investing
- Crypto Stories to Watch
This episode is brought to you by our sponsors firewall, Coinbase Prime & Cross the river
Fireblocks is an enterprise-grade platform providing a secure infrastructure to move, store, and issue digital assets. Fireblocks enables exchanges, lending bureaus, custodians, banks, trading desks, and hedge funds to securely scale digital asset transactions through the Fireblocks network and MPC-based wallet infrastructure. Fireblocks serves over 725 financial institutions, has secured the transfer of over $1.5 trillion in digital assets, and has a unique insurance policy that covers assets in storage and in transit. For more information, please visit www.fireblocks.com.
About Coinbase Prime
Coinbase Prime is an integrated solution that provides institutional investors with an advanced trading platform, secure custody, and top-notch services to manage all of their crypto assets in one place. Coinbase Prime fully integrates crypto trading and custody into one platform, and offers clients the best all-inclusive price in their network using their proprietary Smart Order Router and algorithmic execution. For more information, visit www.coinbase.com/prime.
About Cross River
Cross River powers today’s most innovative crypto companies, with banking and payment solutions you can rely on, including fiat on-ramp/exit solutions. Whether you are a crypto exchange, NFT market, or wallet, Cross River’s all-in-one API-based platform enables banking as a service, ACH and wire transfers, push disbursements -to-card, real-time payments and virtual transactions. accounts and sub-ledgers. Ask now for your Fiat access ramp solution on crossriver.com/crypto.
© 2022 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.