Bill Barhydt, Co-Founder & CEO of Abra, shares insights on their new regulatory approval as a registered investment advisor, challenges in offering basic financial services, navigating regulatory hurdles in the crypto industry, and the future of the $50 trillion crypto market. Topics include SMAs vs. pooled funds, DeFi interactions, and tailored client services.
Read more
AI Summary
AI Chapters
Episode notes
auto_awesome
Podcast summary created with Snipd AI
Quick takeaways
ABRA's regulatory approval as a registered investment advisor enables servicing both credited & uncredited investors, showcasing a shift in engaging with regulators.
Innovative Regulatory Approval for Financial Services
Bill Barheight, the founder and CEO of ABRA, discusses the recent regulatory approval obtained as a registered investment advisor. This milestone allows ABRA to offer a range of financial services to both accredited and unaccredited investors. The approval signifies a shift in how companies engage with regulators and highlights the challenges faced in providing services like trading, earning, yield, and borrowing. ABRA's RIA structure leverages separately managed accounts, leading to enhanced transparency and investor protection.
Transitioning from Pool Assets to SMAs for Yield Generation
Bill describes the transition in the lending yield space from pooled assets to staking, borrowing, and DeFi-based yield. Regulatory scrutiny in certain states classified these offerings as security offerings, leading to closures for some companies. ABRA revamped its approach by adopting a registered investment advisory model, enabling the provision of yield, staking, and lending services. The use of separately managed accounts distinguishes ABRA's model and ensures client asset protection.
Accessing DeFi for Yield Generation
ABRA's utilization of DeFi for lending and yield services represents a significant step in financial innovation. By exclusively relying on DeFi protocols for client transactions, ABRA eliminates counterparty risks associated with traditional lending models. Clients benefit from the decentralized nature of DeFi, where smart contracts mitigate potential risks. ABRA's approach offers clients unique opportunities for higher yields and enhanced asset security.
Diversified Services for Various Investor Profiles
ABRA caters to a diverse range of investors, from high net worth clients to retail investors, offering tailored financial solutions such as structured products, hedging, and borrowing against assets. The platform's flexibility allows for customized services based on individual needs, including trading on credit and accessing high-yield opportunities. ABRA's vision aligns with becoming a global crypto bank that seamlessly integrates real-world assets and innovative financial products.
Bill Barhydt is the Co-Founder & CEO of Abra, a new type of digital cash payments app and network enabling the transfer of cash between any two smartphones. In this conversation, we talk about the brand new regulatory approval as a registered investment advisor, what that means for Abra, how they can service both credited & uncredited investors now, why allowing basic financial services has been so difficult, and where the industry is going.
=======================
Buy and sell cryptocurrency in a tax-advantaged crypto IRA with iTrustCapital. Enjoy 24/7 access, lowest fees in the industry, and tax benefits for your retirement. Open an account today at www.itrustcapital.com
=======================
Core Scientific (NASDAQ: CORZ) is one of the largest public Bitcoin miners and hosting solutions providers for Bitcoin mining in North America. To learn more about Core Scientific, please visit: www.corescientific.com
=======================
Pomp writes a daily letter to over 265,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/