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I've always been curious about this, if you have a stable coin that's in the billions like some are, can't they just put the fiat into a bank account and live o
by Drakim 4y ago
I've always been curious about this, if you have a stable coin that's in the billions like some are, can't they just put the fiat into a bank account and live on the interest rate?
- lxgr 4y agoYou can, now that most (all?) interest rates are significantly above zero again. This would have been significantly harder e.g. in the Eurozone before 2020.
- FatalLogic 4y agoYes. For example- The Wall Street Journal "Cantor Fitzgerald helps manage $39 billion Treasury portfolio that makes up lion’s share of stablecoin’s reserves" https://archive.md/HL307 https://archive.md/HL307 (https://www.wsj.com/articles/wall-street-firm-oversees-billions-of-dollars-backing-tether-b56c68c1 https://www.wsj.com/articles/wall-street-firm-oversees-billi...) (I am NOT endorsing that company, Tether / Bitfinex, or suggesting that anybody invests in it in any way. Just agreeing that if you have a lot of money, then you might profit from it)
- buggy6257 4y agoa $1B high-yield (3.5%) savings account yields $35,000,000. Sounds like plenty to operate what is essentially a shell company plus app for managing monopoly money :)