USDC just holds 90% in government treasuries custodied by blackrock & 10% in cash in a "too big to fail" US bank that's systemically important.
Your local bank has a 0% reserve requirement[1]. Ofc it'll most likely get bailed out by the FDIC (by taxpayers) in case of emergency but US regulated stablecoins are in no way more risky than US banks
Problem is that's held by a private entity, and if coin holders are defrauded no one will be bailing them out, unlike bank depositor or Treasury note holder.
Your local bank has a 0% reserve requirement[1]. Ofc it'll most likely get bailed out by the FDIC (by taxpayers) in case of emergency but US regulated stablecoins are in no way more risky than US banks
1: https://www.federalreserve.gov/monetarypolicy/reservereq.htm....