Interchange became default monetization for fintechs, because legally, they need a banking license to collect yield on customer funds. Hence partnering with Lithic, Marqueta, Galileo for virtual card issuing. In my first job out of college, built one of these money movement flows for a consumer fintech company Exception- Starbucks got away with becoming a bank, and uses the billions deposited from users on the app as an interest free loan. In place of interest for users, will give coffee as a reward Post GENIUS act: Circle/Tether got the regulatory sweet spot. They issue tokens backed 1:1 by reserves. Those reserves can now legally sit in short-dated Treasuries. In theory, Ramp/Brex/Chime could hold customer balances in USDC and capture yield + small transaction fees Opportunities for builders: @marqeta for stablecoin Treasury-as-a-Service for modern fintechs - Sweep incoming stablecoin balances into short-term Treasuries or tokenized MMFs automatically. Don’t issue your own...
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