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Report Reveals FTX Approaching Local Banks For Investments – crypto.news

There are reports that they disappeared FTX Cryptocurrency exchanges pitched local banks to invest their funds in exchanges and get reasonable returns. The latest revelation was made public today via an article in The Wall Street Journal. However, the report explains that the banks involved have refused to comply with FTX’s offer.

failed investment negotiations

The report revealing the failed negotiations did not mention a specific bank.But The Wall Street Journal spoke with a partner at one of the banks that rejected the offer. reportbankers said FTX was actively looking for funds at the time of the pitch.

Additionally, as bankers revealed via a report, FTX has begun calling banks in the Bahamas with bizarre offers for the end of 2021. The offer reportedly required banks to deposit funds on FTX’s cryptocurrency lending platform, in return for which he could earn as high as 12% interest.

Guardian Business spoke about the revelations in an interview with Fidelity CEO Gowon Bowe. Bowe said such an offer from FTX would be unacceptable for many local banks.

Finally FTX Collapsed Three weeks ago, we were hit by a liquidity crunch related to FTT native tokens.

low risk banking

Bow further said commercial banks manage liquidity with minimal risk. And, according to him, cryptocurrencies do not fall into that low-risk category. Bowe explained that the local bank never considered the offer because it would have to deal with the administration and administration of foreign currency as the transactions are conducted in US dollars.

Bowe said he believes the purpose of FTX is to find ways to entice bank depositors to deposit their money on exchanges with the promise of higher returns. But it’s like the old saying goes. The higher the return, the higher the associated risk.

Commercial banks tend to take manageable long-term risks, Bow said, but they would not take volatile price risks. However, there may be some banks that might consider taking that risk, but they will most likely be the larger multinational banks. has both a branch of a bank and a branch of an investment bank, and invests in cryptocurrencies with shareholder funds rather than depositor funds.

FTX is currently Examined By the Bahamas Securities Commission, the US SEC, and the US Department of Justice.



https://crypto.news/report-reveals-ftx-approaching-local-banks-for-investment/ Report Reveals FTX Approaching Local Banks For Investments – crypto.news

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