Dayu's analysis of Circle obtaining its banking license is quite good, but I see some questions remain, so I'll try to add some explanations. Is Circle getting a banking license impressive? Yes, it is. In fact, it's a "National Trust Bank" license, a federal-level license, which is far superior to state-level licenses. There are only about 60 such licenses in the entire US, making it highly valuable. A significant portion of Circle's insanely high compliance and legal costs goes into this area. Will Circle use my money for lending after opening a bank? No, it's a trust bank; it won't engage in deposit-taking or lending, unlike the situation with Silicon Valley banks. Can Circle monopolize the US stablecoin market with this license? Not necessarily. Five licenses were approved this time, and Ripple and Paxos also received them. PS: Paxos applied for many years but never saw any results, always holding a state-level license; this time it's upgraded from state to federal (similar to upgrading from a college degree to a university degree 🤣). Circle will be keeping its money in its own bank, which makes things even easier for them to operate in secrecy, right? Dude, this is a federal license; they can't just mess around with it. Federal regulators can check it anytime, and it will only be stricter and more cautious than before. Won't Circle offend BlackRock? No, it won't. Currently, Circle issues USDC, BlackRock manages it, and BNY Mellon in New York handles custody. In the future, it will be Circle issuing USDC, BlackRock managing it, and Circle Bank handling custody. If they offend anyone, it will be BNY Mellon, not BlackRock. Wait, why is BlackRock managing Circle's USDC? Because currently, most USDC reserves aren't just held in bank accounts. They're held in a specific SEC-registered money market fund called the Circle Reserve Fund (USDXX). This fund is managed by BlackRock, and the money is held in custody at BNY Mellon, but in the future, most of it may be moved to Circle's own bank. What's the point of Circle having a bank? I still can't spend it, right? I think it's only a matter of time. Even if USDC can't be used, it definitely can be done through some apps; it's just a matter of how much wear and tear. Stablecoins are real money, and this is definitely an inevitable trend.

These AI programs are ruining my mood for sharing every day 😭

It is well written, clear and accurate.

Just ask who can reply.