If you are in the "Reads Matt Levine" section of people who follow me, you should probably take a look at StoneCastle, which is a fascinating business.https://stonecastle.com/
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Fun questions: 1) Why are their customers "community" banks and not banks generally? What do they offer them? 2) What firms would you predict are the other side of their market? 3) "How does this actually work!?!" (You get it if you understand the custodian bank's job.)
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Replying to @patio11
Is this, like, a company has "100 million in cash in the bank," but doesn't particularly want to have a nine-figure balance in any particular bank?
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That's one use case for one of their products. Another is "Hiya I'm a discount brokerage with 500,000 customers and ~$2 billion in customer cash. I'd like as much revenue as I can get out of that, but I've got strong liquidity and compliance requirements."
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