> invest in much lower risk investments like money market funds and high quality commercial paper, which tends to have very low returns
As I wrote in the other comment: Coinbase says the tens of billions of USD backing their USDC are in short term US treasuries. ATM the return on these is 4.7% yearly? 4.7% yearly they pocket on more than $50 billions. Without giving the returns back to the USDC holders (as far as I know people keeping USDCs in their own private wallets do not get any yeld).
Or is Coinbase not actually putting these tens of billions in short term US treasuries (which mean they'd be lying)?
Or am I misunderstanding what's the yearly return on these short term US treasuries?
As I wrote in the other comment: Coinbase says the tens of billions of USD backing their USDC are in short term US treasuries. ATM the return on these is 4.7% yearly? 4.7% yearly they pocket on more than $50 billions. Without giving the returns back to the USDC holders (as far as I know people keeping USDCs in their own private wallets do not get any yeld).
Or is Coinbase not actually putting these tens of billions in short term US treasuries (which mean they'd be lying)?
Or am I misunderstanding what's the yearly return on these short term US treasuries?