Coinbase Adds Wall Street Veteran Dodds to Its Board of Directors

  • A former Charles Schwab CFO with decades of experience in the financial industry has joined Coinbase's board of directors.
  • The exchange touts this is part of its "effort to expand our financial services capabilities."

Many cryptocurrency enthusiasts and investors believe blockchain technology will help change banking forever.  Considering blockchain can allow payments to be processed more efficiently and at a lower cost than traditional banking, many in the financial sector champion it can aid in a complete revamp of the finance world.

The cryptocurrency community also therefore sees it as a symbolic confirmation that blockchain is the future when Wall Street execs end up leaving their financial firms to join cryptocurrency-related companies. Recently, it was revealed that Chris Dodds, who serves on Charles Schwab’s board of directors, has joined the Coinbase’s board of directors in early October.

Through a statement, the company said:

Dodds’ addition to the Coinbase board is part of our effort to expand our financial services capabilities as we head into this next chapter for the company and the cryptocurrency industry as a whole.

Experience From Charles Schwab

 The Charles Schwab Corporation is not only one of the largest banks in the world, but also the third-largest asset manager in the world. Specifically, the San Francisco-based company has over $3 trillion in management.

Dodds has worked in various roles for Charles Schwab and has held positions relevant to financial planning and analysis, corporate development, and more. Dodds, known as one of the best in technology talent acquisition, has helped grow the company for decades, as he originally joined it in 1986. Aside from the fact that the company is a major player in global finance, it has also been consistently recognized as a great place to work at as well.

Coinbase Keeps Expanding

 The move shouldn’t come as much of a surprise to some, considering Coinbase, America’s largest cryptocurrency platform, is open about its plans to expand aggressively. In fact, it recently revealed it wants to multiply its manpower seven-fold, and launched new products like Coinbase Bundle.

Christine Sandler, the co-head of institutional sales, is open about Coinbase’s strategy, stating plainly that “we want to partner with appropriate institutions to help the whole ecosystem grow”. Its strategy has seemingly been working, as Coinbase may soon be among the “highest-valued” startups in the US.

This is further emphasized through recent Coinbase hires, as well. J.P. Morgan executive director Oputa Ezediaro left the Big Four bank for Coinbase in January of this year. Eric Scro, the former head of finance at the New York Stock Exchange, joined Coinbase shortly afterwards, in March.

CoinBits Allows Users to Earn Passively By Converting, Saving Change in Bitcoin

Erik Finman, an early Bitcoin (BTC) adopter, has launched a crypto platform called CoinBits, which allows investors to passively invest in the flaghship cryptocurrency.

According to TechCrunch, Finman’s new app, CoinBits, intends to democratize access to cryptocurrency by allowing people from all walks of life to make small investments through commonly-used investment and savings strategies. These reportedly include roundups on transactions made via credit or debit card purchases.

The CoinBits app will also support conversion of fiat currency to bitcoin via regular transactions from users’ checking or savings accounts. While CoinBits has been designed to mainly benefit its users, Finman revealed that his own BTC holdings will also grow as more people use the small savings app.

No Commissions on Transactions, 98% of Bitcoins Stored Offline

As explained on CoinBits’ official website, users can invest small amounts such as $10, $25, $50, or $100 through the app’s web-based interface. The savings app also lets users adjust the risk level for their investments.

Notably, the CoinBits app does not charge transaction fees and 98% of users’ bitcoins are kept securely in cold storage (offline).

Explaining how investing in cryptocurrencies can be challenging for some people, due to their highly technical nature, Finman said:

Overall, investing in bitcoin is complicated and can feel almost impossible. CoinBits allows you to put that spare change in bitcoin. For example, if you spend $1.75 on French fries, that remaining 25 cents is invested automatically.

As noted on CoinBits’ website, the company handles withdrawals and users are charged a $0.50 fee for same-day processing. There’s also an option to download the transaction history associated with users’ accounts. This makes it easier for users to manage their finances and track how much they may have gained or lost on their bitcoin investments.

Crypto-Backed Lender Receives $25 Million in Deposits Two Weeks After Launch

As the crypto and blockchain ecosystem continues to evolve, many new startups have been offering different products and services which allow users to earn passively on their digital asset holdings. In March 2019, BlockFi Lending LLC, a New York-based “secure non-bank lender” announced it had received $25 million in cryptocurrency deposits just two weeks after launching its crypto-backed loans packages.

BlockFi’s investment packages allow users to earn interest on their Bitcoin (BTC) and Ether (ETH) investments.