B-TIER resource
GENIUS Act stablecoins — how banks keep the T-bill yield on your cash
100k ft — What is this?
GENIUS Act stablecoins — how banks keep the T-bill yield on your cash
50k ft — Why care?
Under the GENIUS Act banks can issue stablecoins, park the backing cash in short-term Treasury bills, keep the roughly 4% yield (the law bars passing it to holders), and repo the T-bills for liquidity. Holders can swap into tokenized Treasuries like USYC, which Binance accepts as collateral. Ends with a paid-group pitch.
10k ft — Key takeaways
• Repo gives issuers fast liquidity for redemptions
• Stablecoin issuers earn the T-bill yield, holders do not
• Tokenized Treasuries are how holders can capture yield
5k ft — Tools & techniques
Binance, USYC
algorithmic trading, repurchase agreements, tokenized treasuries
1k ft — Deep-dive / try it
Banks can issue stablecoins now, and they keep the interest on your cash.
Find out how we’re taking advantage of this inside the group. Link in bio, a dollar a month.
The GENIUS Act, the US stablecoin law, lets banks create their own stablecoins.
You give the bank $100,000 and get $100,000 in stablecoins back. The bank holds your cash in things like short term Treasury bills, which are loans to the US government, and it keeps the interest. The law doesn’t let it pay that interest to you.
The bank can also lend those Treasury bills out in short loans called repurchase agreements, so it can raise cash fast when people cash out.
Your stablecoin can go to work too. You can trade it for tokenized Treasuries, which are Treasury bills on the blockchain. One of those funds, USYC, is even acce…
Transcript excerpt
The entire banking system just got exposed and they're using crypto to multiply your money behind the scenes because nobody understands it. You're going to understand it now. The genius actor Simon Talon that allowed banks to create stable coins legally. If a customer wants a stable coin, the bank can issue it, but the customer needs to give the bank real cash and they get to use that cash for investments. I don't know if you guys knew that. So you get a hundred thousand, for example, in the form of a stable coin to use in crypto. And the bank is to use your hundred thousand for other investments. The vast majority of those investments are usually treasury bills. So the bank takes your money. They put it into treasury bills. Now, a treasury bill is basically government debt from the United States. And the government will pay back that hundred grand and interest to the original investor. And the original investor in this case is the bank. So the treasury bills may be sold as purchase securities for repurchase agreements. The fine print exposes everything. They can use the treasury bills for repurchase agreements. So here's a stable coin. Here's the real hundred thousand dollars cash. It gets put into the U.S. government. Now, I want you to remember the colors because it shows the multiplication, duplication they're doing. Because the government got a hundred thousand from the bank, which was your money from the stable coin, they get a treasury worth a hundred thousand plus a…