USDC just holds 90% in government treasuries custodied by blackrock & 10% in cash in a "too big to fail" US bank that's systemically important. Your local bank

USDC just holds 90% in government treasuries custodied by blackrock & 10% in cash in a "too big to fail" US bank that's systemically important. Your local bank has a 0% reserve requirement[1]. Ofc it'll most likely get bailed out by the FDIC (by taxpayers) in case of emergency but US regulated stablecoins are in no way more risky than US banks 1: https://www.federalreserve.gov/monetarypolicy/reservereq.htm#:~:text=As%20announced%20on%20March%2015,requirements%20for%20all%20depository%20institutions https://www.federalreserve.gov/monetarypolicy/reservereq.htm....