[RandomLensman]

Isn't the whole thing conceptually the same as or very close to a money market fund then (absent the specific regulations there)? What is the advantage?

[somethingsidont]

Yes, I would say so. Advantages are liquidity & ease of transfers (both within custodians like PayPal, and on public blockchains).

[RandomLensman]

If you want ease of transfer and liquidity then you are kind of back to a bank demand deposit, no? Why go the extra steps?

If you want to transfer treasuries, that can be done, too.

[somethingsidont]

I mean conceptually this is just VUSXX (with a lower interest rate probably), but you can buy something online with it through a PayPal checkout page, or send it to a friend through the PayPal app, or send it across borders in seconds. I do think that has value from an ease-of-use standpoint.

[RandomLensman]

Feels quite similar to normal banking products, but I suppose retail banking in the US is so poor, that it might already be an advantage there.