THOUGHTS ON STABLECOIN BANKS

Summary from the TLDR Crypto newsletter

One type of stablecoin bank would allow customers to automatically earn T-bill yield on deposits, with bank activities being performed in stablecoins but still providing the user with the expected banking experience. A bank designed this way might prevent a threat to our current banking system, since it would drive money from fractional reserve banks or be a stablecoin not 1:1 backed with dollars. A stablecoin created by a federally chartered bank that operates a fractional reserve model can solve this problem and is starting to be explored.