Dan Romero pfp
Dan Romero
@dwr.eth
Type of financial entity that should exist: - Consumers and businesses can easily sign up - Federally regulated - Only function is to custody USD - No fractional reserve - Ability to opt-in to yield via US Treasuries - Revenue model: cut of Treasury yield or $9.99/m subscription
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Dan Romero pfp
Dan Romero
@dwr.eth
Normal custodians not open to retail, no easy access to consumer apps via Plaid, basic functionality like checking and bill pay etc.
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Fastackl.eth pfp
Fastackl.eth
@fast
Who is going to bag hold all the HTM assets on bank’s balance sheets though when depositors flee to the new 1:1 backed provider. And then where will credit come from 😱😅
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Cameron Armstrong pfp
Cameron Armstrong
@cameron
I can already imagine the look on the VC’s face when I say I’m gonna charge a $100M deposit account $9.99 a month 😂😂😂 (If I can get a $20M on $100M terms from a FC investor I’ll pivot to this TODAY 😩💰🫡)
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Fred Blauer pfp
Fred Blauer
@fblauer
The insurance Co's could just offer insurance for deposits that are not covered by FDIC. But I suspect that people wouldn't buy it since it lowers the rate that they are earning on deposits. You don't need to create new entities that are not profitable. I don't think there is incentive to do that.
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Fred Blauer pfp
Fred Blauer
@fblauer
Seems to me that SVB was federally regulated. How did that help?
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timdaub (🥝,🎩) pfp
timdaub (🥝,🎩)
@timdaub.eth
sounds almost like USDC, or not?
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mk pfp
mk
@mk
I doubt the Fed would allow such a reasonable option. All the money would go there
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Joe Blau 🎩 pfp
Joe Blau 🎩
@joeblau
This seems too straight forward for anyone in Silicon Valley to look into, but this is an amazing idea.
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tldr (tim reilly) pfp
tldr (tim reilly)
@tldr
And they shall call it: "Mattress of America" 🛏️ 🕳️ 💰
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Danny pfp
Danny
@ds
https://en.m.wikipedia.org/wiki/Full-reserve_banking
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Joey Roth | Dyad pfp
Joey Roth | Dyad
@joeyroth
unfortunately this could not compete with a more fragile system that creates credit and thus offers higher yield. we need a robust system that offers competitive yield via closed-loop credit formation without ever being net undercollateralized
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Brenner pfp
Brenner
@brenner.eth
https://www.bloomberg.com/opinion/articles/2019-03-08/the-fed-versus-the-narrow-bank
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Carlos Matallín pfp
Carlos Matallín
@matallo.eth
Reminds me of https://ma.tt/2009/08/starting-a-bank/ I have experience building a similar frontend for this in the past and is something I'd love to work on.
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Dave pfp
Dave
@dave
This reminds me of Payments Banks in India. They were created a few years ago, mostly from a financial inclusion perspective, and they've had a mixed success rate so far. The business model was really tough when they couldn't lend.
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