"Banks issue dollars; non-banks issue claims to dollars."
This difference explains why many #stablecoin issuers are seeking bank charters in the U.S.
đšBut be careful, bc not all banks are actually banks.
It's critical to look at the statutory powers of the particular institution, even if "bank" is in the institution's name. U.S. federal law generally distinguishes banks from non-banks by one determining characteristic: whether the corporation is authorized by law to receive U.S. dollar deposits (i.e., banks can, but trust companies and other non-banks cannot). More in this handy chart below (from a soon-to-be-published #stablecoin paper). Among crypto-native companies in operation, only two (@krakenfx Bank & @custodiabank) are authorized by statute to receive U.S. dollar deposits.
Depository institutions issue dollars; non-depository institutions issue claims to dollars.đĄ
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