GUSD / Gemini USD stable coin takes that approach. They deposit the funds in State Street Bank and they are even FDIC insured per user. It really depends what

GUSD / Gemini USD stable coin takes that approach. They deposit the funds in State Street Bank and they are even FDIC insured per user. It really depends what you are using the stable coin for wether that would matter to you. If you only use it to move between exchanges and don’t hold them for extended periods the risk is minimal in my view. The scenario where you might prefer the GUSD model is when you are depositing in an account to get yield for an extended period when using BlockFi or Gemini Earn.