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

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 😱😅

Contributor to Kanon.art, creators of the K21 art collection (K21.kanon.art), kspec.io (institutional grade provenance), rqdq.io (NFT borrowing protocol) + more

Yes - to be clear I was being facetious. The product you outline makes WAY more sense than creating dodgy stablecoins (aka bank deposits) backed 90% by illiquid HTM assets. But bc it makes so much more sense, the idea probably would be shut down faster than Libra 😅