Curious if people would keep 500K USD in the bank or as USDC/USDT?

[WorldCitizen99]

Let's say you needed to park the money for a couple months while you close down a business, change residency, and get some necessary paperwork to open up an IBKR account.
In these volatile times where hedge funds need 2 trillion dollar bailouts, are you keeping your USD in stablecoin form or still in cash?

 

[JohnnyDoe]

If you really need something fiat-like hold t-bills

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[WorldCitizen99]

OK - I'll try to get an IBKR account sooner and see if I can buy t-bills. I don't have a US acct, only WIse and a multicurrency acct without an assd brokerage acct.

Last edited: Apr 10, 2025

 

[MartyyByrde]

WorldCitizen99 said:
Let's say you needed to park the money for a couple months while you close down a business, change residency, and get some necessary paperwork to open up an IBKR account.
In these volatile times where hedge funds need 2 trillion dollar bailouts, are you keeping your USD in stablecoin form or still in cash?
Click to expand...

Why not bit everywhere ?

Stablecoin are great for park money, or just hold some treasury bills.

Also for stablecoins, if you take the road, just split 250k tether / 250k usdc

Remember stablecoin can be remote frozen if associated with some dirty s**t 😉

 

[tacokai]

That's why we in the many other discussions about similar issues came to the conclusion that DAI may be the better stablecoin because it can't be frozen.

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[MartyyByrde]

tacokai said:
That's why we in the many other discussions about similar issues came to the conclusion that DAI may be the better stablecoin because it can't be frozen.
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Hello,

Sorry to break a bit this illusion but DAI is also backed by USDC, and partially collaterized by some few others crypto including ETH

Which means that is another layer risk ( in my own opinion )

"DAI is secured by a basket of cryptocurrencies, including ether (ETH), USD Coin (USDC), wrapped bitcoin (wBTC), and basic attention token (BAT)"

I would wait that RWA gain some traction, just buy some strong backed assets, or tokenized stocks, put a bit everywhere for diversify risks. (Backed, custody, and audited by reputable institutions Hello Blackrock fidelity - with decent liquidity overtime..)

 

[polonieth]

Wait until pDAI pegs to a dollar, the first decentralised stable coin. MakerDAO changed to Sky with USDS. SOY USD with a blacklist function.

I'd split it across a few places not just one.

 

[redeye]

I recall it was only a few months ago that we had similar discussions here, and back then all the gurus swore by DAI as the most stable option. It also tracks the dollar, so it's kind of pointless if the goal is to avoid fluctuations in the dollar's value.

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[Piano]

redeye said:
I recall it was only a few months ago that we had similar discussions here, and back then all the gurus swore by DAI as the most stable option. It also tracks the dollar, so it's kind of pointless if the goal is to avoid fluctuations in the dollar's value.
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Tracks the dollar exactly unlike Tether ?

 

[MartyyByrde]

Piano said:
Tracks the dollar exactly unlike Tether ?
Click to expand...

Stablecoin arent tracking dollar

The market makers maintain the peg to usd by demand and offer. they play on spread like any currencies market

 

[uplana]

So far I lost 1800 US$ on stashing my coins in DAI !

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[JustAnotherNomad]

WorldCitizen99 said:
OK - I'll try to get an IBKR account sooner and see if I can buy t-bills. I don't have a US acct, only WIse and a multicurrency acct without an assd brokerage acct.
Click to expand...

I thought t-bills have high fees associated with them on IBKR, but maybe I'm wrong.
Can't you buy a money-market fund or just split the money across multiple banks?

 

[hlepic211]

BTC, USDC or even PAXG. It's easy to move, easy to hodl, easy to hide if needed.

 

[WorldCitizen99]

JustAnotherNomad said:
I thought t-bills have high fees associated with them on IBKR, but maybe I'm wrong.
Can't you buy a money-market fund or just split the money across multiple banks?
Click to expand...

Yes, at the very least it would be spread across multiple banks, although
a) since most banks outside the US only have max 100K insurance, it requires 5 accounts
b) who knows if they would even respect the insured limits for broader systemic crises.

 

[thomasparra]

What is the current yield for USDC/USDT? If lower than 5 or 6% / year I would not bother.

 

[uplana]

Is there even a good way to store 500K or cash for a maximum of 12 months and still expect some return on it?

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[thomasparra]

uplana said:
Is there even a good way to store 500K or cash for a maximum of 12 months and still expect some return on it?
Click to expand...

4%, US1Y which is arguably the safest investment you can make. This is why I asked if USDC or USDT provides a substantially higher yield.

 

[JustAnotherNomad]

WorldCitizen99 said:
Yes, at the very least it would be spread across multiple banks, although
a) since most banks outside the US only have max 100K insurance, it requires 5 accounts
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Why not use US accounts? They are insured up to 250k each or so.
Besides, I can't imagine the ECB would cover deposits in USD. Not to mention it would be more difficult to get USD accounts in Europe.

 

[daniels27]

JustAnotherNomad said:
Why not use US accounts? They are insured up to 250k each or so.
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Yes, 250k per bank if you use sweeps, you can get up to 5M with certain EMI
https://robinhood.com/us/en/support/articles/deposit-sweep-program/

JustAnotherNomad said:
Besides, I can't imagine the ECB would cover deposits in USD. Not to mention it would be more difficult to get USD accounts in Europe.
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They also cover USD deposits, but the payout will be in EUR.
https://www.gesetze-im-internet.de/einsig/__7.html
Many banks offer currency deposits
https://www.comdirect.de/geldanlage/waehrungsanlagen.html

 

[bird]

I keep that in bank. With corporate bank not personnal