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HEALTH, WEALTH, AND HAPPINESS |
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Welcome, blockheads! Here's what's new. |
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Fri 12/10 at noon ET: Join our Members-Only Workshop to discuss how to join, create, and invest in DAOs, the latest investor opportunity! RSVP here.
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Coinbase Launches DeFi Yield Product (Coinbase): Little reported, but big news: Coinbase just launched its new DeFi Yield product which allows customers in 70 countries to earn yield (interest) from around 2.5 to 5% APY. This offer is not available to U.S. customers: #SECWTF?
Investor takeaway: If you're a Coinbase customer, buy some DAI and start earning (Coinbase even covers gas fees, the most expensive part). Even though U.S. customers aren't eligible, you can still buy Coinbase stock to invest in the company's long-term growth (see our guide here). |
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The market still does not understand how disruptive DeFi is, as evidenced by Coinbase's stock price on the launch of their new product: |
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Investor takeaway: Imagine you had a bank that was now able to offer interest at 10x the rates of other banks. That is what is happening with DeFi yield products. Coinbase has it. The banks don't. Do the math. |
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Hi all, The disruption of traditional banking continues.
The recent initial public offering (IPO) of Nubank — a relative newcomer to the banking world — provided the Brazilian neobank with a valuation higher than Itaú Unibanco Holdings, the largest banking institution in Latin America in terms of assets under management. |
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Nubank started out as a way to provide Brazilians with a simpler, better way to access credit cards without high annual fees, and it has since become the most valuable financial institution in Latin America. With customers across the region, the digital bank provided simple financial products with comparatively low fees to over 48 million customers as of September.
Is this the start of something NU? The public equity market debut by Nu Holdings, Nubank’s holding company, raised $2.6 billion at an implied valuation of over $41 billion, making it the U.S. stock market's fifth-largest public offering this year, according to figures provided by Dealogic.
Shares of Nu Holdings Ltd., trading under the ticker NU, opened at $11.25 on The New York Stock Exchange after selling for $9 apiece in the IPO.
Nubank has drawn the interest of some of the world’s largest institutional investors, including Berkshire Hathaway, Sequoia Capital and Tencent Holdings. |
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The concept of banking can be traced all the way back to Ancient Greece, where temples acted as financial centers, safekeeping assets and loaning money.
Fast forward to the modern world, and banks are benefiting from strong performance. More specifically, U.S. lending institutions have been having a great 2021, and many industry observers believe these organizations will enjoy record profits this year.
This has taken place during a time when the financial services industry has been doing quite well, adding $1.9 trillion in market value between February 2020 and October 2021.
In the traditional banking sector, future gains are increasingly expected to come from the fastest growing populations of the economy and disruptors. The next generation of consumers are looking for a seamless, digital, low-cost experience and don't need the bells and whistles of a traditional bank.
And what about the impact that central bank digital currencies will have on traditional banking? As countries scale to launch their digital versions of fiat currencies, many iterations are possible, including the possibility of bypassing commercial banking.
While this will probably not be the case for major developed economies such as the U.S., other emerging countries might find that model more efficient, leading to central banks competing with commercial banks for short-term deposits. Feel free to reach out with any questions, comments, insight and feedback. Thank you for reading! |
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Evamarie Augustine Market Analyst |
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Michael Saylor is ahead of the curve! |
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Short term vs. long term horizons. |
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Bitcoin Market Journal is a daily newsletter focusing on blockchain and crypto investments. It is written and edited by Evamarie Augustine, Charles Bovaird, Mati Greenspan, and John Hargrave.
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