[jlmorton]

This is not a bank. It's an asset and a payment network. Banks are organizations that borrow short to lend long. This is a stablecoin backed very closely 1:1 with fiat currency. There is no fractional reserve, and there is no lending.

[freddie_mercury]

You don't need either of those things to be a bank. Check out "narrow banking" for the history, theory, and current attempts at it.

From one survey:

"Prior to the early-twentieth century, US banks tended to be much narrower than they are today. Common modern banking practices, such as maturity transformation and explicit loan commitments, arose only after the creation of the Federal Reserve and the FDIC"

[vel0city]

If it is not fractional reserve, how do they guarantee interest payments for those ponying up the millions today?