admiralg

(please don't hesitate to correct me if I'm wrong) Say there are 3 customers at a single bank.

Customer 1 = Investor, has 100 cash and deposits it into a bank account

Customer 2 = Borrower, borrows 100 from the bank

Customer 3 = Restaurant, provides a service for Borrower. Borrower pays a 100, and Restaurant deposits it to it's bank account.

This is how the "sovereign money" travels: Investor -> Borrower -> Restaurant

But the customers see the following account balances

Investor : 100

Borrower : -100 (owes the bank 100)

Restaurant : 100

If now Investor and Restaurant both want to withdraw their money the Bank would be in trouble. The bank only has 100 "sovereign money" on their books. Investor and Restaurant won't care who owes the bank, they want their money.

But the solution for this would be easy, Investor must be given the choice if he wants to allow/disallow the bank to loan out his deposit. Similarly how it works with long positions at a brokerage firm.

no, we support it, there's an api that you can use. Brokerages live off of volume.