Alexander Lorenzo explains how USDC's issuer uses customer deposits to buy government debt for roughly 5% yield. The company recently went public, raising $800 million by selling 10% of its stock, and its valuation jumped from $7 billion to $74 billion.
USDC, when you give them $100, they take your $100, and what they do is they actually put that $100 into buying government debt. They buy government debt, they make a 5% yield, and that's their, that's their revenue. So they just went public. They just made approximately— I did the math— $800 million off of the IPO. They sold 10% of their stocks, but Their evaluation is through the roof. They started off at $7 billion, they're at $74 billion the last time I checked.
