> market cap is about equal to that of PNC Bank, America's 7th largest bank.
PNC Market cap, or assets they hold? A currency is not the same as the bank that holds it.
Also, how big is PNC compared to #1?
PNC Market cap, or assets they hold? A currency is not the same as the bank that holds it.
Also, how big is PNC compared to #1?
A bank’s assets include the amount in customers’ deposit accounts, as well as loans, mortgages and credit card accounts. Some of these banks have thousands of branches, while others are mostly, or exclusively, online. All of these banks are FDIC insured.
7. PNC Bank: $4.49B As of July 2021, PNC Bank acquired BBVA USA and is transitioning customers and accounts. Including BBVA branches, PNC Bank now has branches in over half the country.
ATMs: About 18,000; the bank may reimburse up to two out-of-network ATM fees per statement period.
Branches: 2,800+ in 27 states and Washington, D.C., with high concentrations in Pennsylvania and Texas.
1. Chase: $2.45 Trillion Chase, the largest bank for consumers and small businesses, is part of JPMorgan Chase & Co. It has one of the largest branch networks out of all the biggest banks, with locations in the most states.
ATMs: 16,000; some or all out-of-network ATM fees waived for premium accounts.
Branches: 4,700+ in 48 states and Washington, D.C., with high concentrations in California, the East Coast and Texas; no branches in Alaska or Hawaii.
Perhaps grandparent's comparison of USDT market cap to the total value of the Financial Services Group stock is peculiar, but let's use correct numbers in the discussion. The grandparent comment refers to USDT market cap, which is ~$80B USD. That's roughly equivalent to PNC Financial Services Group ("PNC" on NYSE) market cap of ~$85B. JPMorgan Chase ("JPM" on NYSE) market cap is ~$450B USD.
The creators of USDT claim that every holder can exchange it back to 1USD each.
Although legally this is very different from a bank, I would argue that economically, it’s similar.
USDT creators originally claimed that every Tether was backed with USD, but then switched away from that years ago (if my memory serves me correctly). They now mention that they are backed by reserves, assets, etc.
USDT creators have for a long time said that they are not obliged to honor every redeption and will instead only selectively allow redemption. (The implicit understanding is that they will honor Tethers that exchanges require exchanged, but not from users directly).
Banks by design hold a fraction of what their clients deposit with them. This is one of the key mechanisms by which the economy expands... so a comparison against some "ideal" USDT is apples to oranges, but ends up being closer than expected when you use the actual USDT operating model.
Minus liabilities of $412bn gives you $54bn of free equity, which is a decent enough reserve ratio (capacity to absorb losses) for a bank.