Will tokenized bank deposits crowd out stablecoins? Caitlin Long, founder and CEO of Custodia Bank, says stablecoins are about $300 billion against roughly $5.7 trillion in traditional demand deposits, and that bringing tokenization into the banking system could be the bigger story. She also explains why the Treasury wants tokenized dollars and what the Fed is doing about it.
Chapters:
0:00 Fiscal Dominance and “Nothing Stops This Train”: Intro to Caitlin Long
1:53 Why Washington Is Pushing Tokenized Dollars and Where the Fed Stands
3:28 Tether, New Treasury Demand, and the GENIUS Act Rules
7:14 Community Banks vs. Megabanks: The Deposit Flight Debate
13:03 SVB, AI Agents, and a Banking Model Under Pressure
16:26 The Eurodollar Parallel and the Fed’s Reluctance
19:29 Tokenized Deposits vs. Stablecoins, and Tokenized Equities
26:50 Treasury Market Stress, Fed Hikes, and the AI Debt Question
30:24 Bitcoin as Digital Gold: Retail Ownership and Holding Long Term
35:25 Treasury Buybacks, Lessons From Volcker, and Life After the Clarity Act
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