I think their target customers are not banks. The article says it would "take deposits from financial institutions" but this could mean insurance companies, pen

I think their target customers are not banks. The article says it would "take deposits from financial institutions" but this could mean insurance companies, pension funds, credit unions, securities exchanges, etc. Anyone who might have substantial cash reserves as an integral part of their business, but who does not actually have a banking license. Edit: from the Matt Levine piece linked further down the comments, the target customers are "money-market funds and foreign central banks".