ROCKSTAR on Nostr: From what I know they don't hold USDC(BDC), but rather short Bitcoin on the exchange ...

From what I know they don't hold USDC(BDC), but rather short Bitcoin on the exchange to create synthetic USD on behalf of whoever holds account.

Since it's custodial setup you don't want merchants hold large amounts - setting up withdrawal to your Phoenix wallet for example is the way to go.

But for getting Merchants online and accepting payments over lightning, I think this is the setup to go for.