Today in crypto, Coinbase CEO Brian Armstrong has outlined plans to build a crypto super app to rival traditional banks, an economist forecasts the broader crypto market to surge if the US Federal Reserve continues to cut rates. Meanwhile, the FTX Recovery Trust will release $1.6B to creditors in a September payout.
Coinbase CEO sets sights on replacing banks with crypto super app
Coinbase CEO Brian Armstrong has said his company’s most ambitious vision is to replace traditional banks by turning Coinbase into a full-service crypto “super app.”
Speaking during a recent interview with Fox Business, Armstrong confirmed the company’s plans to offer a full suite of financial services, from payments to credit cards and rewards, all powered by crypto rails.
“Yes, we do want to become a super app and provide all types of financial services,” Armstrong said. “We want to become people’s primary financial account and I think that crypto has a right to do that.”
Armstrong criticized the current banking system as outdated and inefficient, pointing out high transaction fees as one of the main pain points. “It kind of boggles my mind. Like, why are we paying two to three percent every time we swipe our credit card?” he asked. “It’s just some bits of data flowing over the internet. It should be free or close to it.”
Bitcoin and alts set for Fed ‘jolt,’ market isn’t ready: Economist
Crypto market participants may be underestimating how aggressive the US Federal Reserve will be in shifting its policy direction, according to an economist.
“Markets are underpricing the likelihood of rapid rate cuts in the coming months on the part of the Federal Reserve,” economist Timothy Peterson told Cointelegraph on Friday.
“There has never been a gradual reduction in rates like that currently envisioned by the Fed,” Peterson said, explaining that he expects “the surprise effect” to kick in and potentially catch the market offside.
“It will jolt Bitcoin and alts up substantially, and I think that will happen in the next 3-9 months.”
FTX Recovery Trust to unlock $1.6B for creditors in September disbursement
The FTX Recovery Trust, the entity overseeing the distribution of funds from the bankrupt crypto exchange, announced a third tranche of distributions to creditors, worth about $1.6 billion.
According to a Friday announcement, the distribution is scheduled for Sept. 30, and creditors should receive the funds in their accounts within three business days of the payment date.
The third distribution includes a 6% payout for Dotcom Customer claims, a 40% distribution for US Customer Entitlement Claims and a 24% distribution for General Unsecured Claims and Digital Asset Loan Claims. Convenience claims will receive a 120% reimbursement as part of September’s payout.
FTX’s Recovery Trust began reimbursing creditors in February with a $1.2 billion payout, and followed it up with a $5 billion distribution in May. The trust has up to $16.5 billion in assets earmarked for its creditors and former customers.
