Teacher Dayu's analysis about Circle obtaining a banking license is quite good, but I see that everyone still has some questions. I will try to add some interpretations. Circle has obtained a banking license, is this amazing? Awesome In fact, this is a license for "National Trust Banks" at the federal level, which cannot be compared to state-level licenses. There are only about 60 copies in the United States, which is very valuable. Circle incurs abnormally high compliance and legal costs every year, and many of them are invested here. Circle has opened a bank, will they use my money to lend out? No, this is a custodian bank that does not engage in deposit and withdrawal services, and there will be no situation like Silicon Valley Bank. Can Circle monopolize US stablecoins with this license in the future? I can't say that either. Five licenses were approved this time, and Ripple and Paxos also obtained them. PS: Paxos hasn't watched it for many years and has been holding onto the state level. This time, it's a state to federal promotion (similar to upgrading to a bachelor's degree) ）。 Isn't it more convenient for Circle to keep their money in their own bank in the future? Brother, this is a federal level license, we can't mess with it. Federal regulatory agencies can conduct inspections at any time, which will be stricter and more cautious than before. Didn't Circle offend BlackRock? I won't offend. Because currently, Circle issues USDC, BlackRock is responsible for management, and BNY Mellon in New York is responsible for custody. In the future, Circle will issue USDC, with BlackRock responsible for management and Circle Bank responsible for custody. To offend would be to offend at most Mellon, not BlackRock. Wait, why is the USDC issued by Circle managed by BlackRock? Because currently, most USDC reserves are not solely held in bank accounts. They are stored in a specific SEC registered money market fund called Circle Reserve Fund (USDXX). And this fund is managed by BlackRock, and the money from these funds is held in custody in Mellon, New York, but in the future, most of it may be moved to Circle's own bank. What is the purpose of opening a bank in Circle? Can't I consume USDC yet? I think it's only a matter of time. Even if USDC cannot be used, it can definitely be done through some apps. It's just a matter of how much it wears out. Stablecoins are real money, and this is definitely the trend.