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You have to have liquid dollars in inventory to manage USD redemptions. Banks have to keep 10% of deposits on reserve at the Fed, so $3.3 billion in cash out of $40 billion is actually on the low side.

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The fed recently reduced reserve requirements to zero, so banks need exactly zero cash on hand to fund withdrawals shockingly

And circle had ~$10B is cash at banks for redemptions, $3.3B of which in SVB

Gonna need proof. Doesn’t sound like something the Democrats would do.

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

but not really too much. t-bills settle t1. i.e. you can get all your money into cash in 24 hours.

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