> this was a brokerage with stocks, the customers own those stocks
Sort of. Most individuals' shares are held in "street name,"[1][2].
You have a claim against the broker for those shares, but that could be impaired if the broker went under. Losses are rare because American brokers are highly regulated. Coinbase has fought vigorously against being similarly regulated [3].
If you look closely you’ll find that the broker and the holding company have similar but distinct names - it’s supposed to be setup so that if the broker goes under the holding company can be transferred and continue.
Similar to banks and FDIC the financial industry is good at this kind of thing and brokers can go bankrupt without customers ever really noticing.
Sort of. Most individuals' shares are held in "street name,"[1][2].
You have a claim against the broker for those shares, but that could be impaired if the broker went under. Losses are rare because American brokers are highly regulated. Coinbase has fought vigorously against being similarly regulated [3].
[1] https://www.sec.gov/fast-answers/answersstreethtm.html
[2] https://www.sec.gov/reportspubs/investor-publications/invest...
[3] https://www.marketwatch.com/story/coinbase-proposes-crypto-f...