Stablecoins vs Banks: Issuers Run a Deposit Business
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- Stablecoins are cryptocurrencies pegged to reference assets such as the U.S. dollar or Euro
- Stablecoin issuers hold vast amounts of deposits by accepting cash in return for issuing coins onchain, making them similar in some ways to — but also distinct from — traditional banks
Why it matters: Because stablecoin issuers hold customer cash at scale and issue tokens against it much like banks take deposits, the piece frames the comparison between the two models as central, even though the specific differences are truncated in the available excerpt.
