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 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. 
 This is it 💯  
 Thanks for your response, that makes sense. Didn’t even think about that as an option. 
I feel like this is one of the best ways that I can help the community grow. I’m not the most tech savvy person, simply not my background. But I am knowledgeable enough and interested enough to understand the basics and what it can do for our future as a society. I’m trying to put my money (literally haha) where my mouth is and start contributing to the cause instead of just agreeing with it. But the route that I saw in my head was spreading awareness in my personal life, then actually USING and growing this tech with my side hustle. Both through using it in my business and also pulling others along with me. So here I am on a permission-less social app talking about permission-less money and I love it haha. 
But I will look into this in more depth and see if it can help with that instead of discarding the idea. Thank you 
 what would be your recomendation for someone who's semi-technical (but lazy) merchant? what do u think about LNbits ? I needto set up shop for my art and i'd hate to do it twice 😂  
like if there is a bit more complicated setup that gives me full self custody i'd go for it