The 3.6% Scam: The Truth About Why Banks Are Terrified of Stablecoins | Omid Malekan

The Fed KILLED The Safest Bank In History | Darrell Duffie

Darrell Duffie of Stanford is famous for being the world’s foremost scholar of financial market plumbing. Few will know that he was also a director of The Narrow Bank (TNB), the bank the Fed quietly strangled for the crime of being too safe. In this episode we cover: Why did TNB die? What are the parallels to the state of stablecoins today, if any? Do stablecoins actually threaten bank deposits? What does a Treasury security purpose-built for on-chain settlement look like? What tokenized assets should serve as the backbone of financial system of the future? Darrell’s Brookings paper with Don Wilson and TNB’s regulatory comment letter on Regulation D are both worth reading alongside this episode. 00:00 Intro 01:07 The Bank That Couldn’t Fail 03:53 Will Stablecoins Kill Lending? 07:54 Private Credit’s Run Problem 11:14 Too Safe to Exist 18:31 Why USDC Can’t Run Wall Street 25:21 The Narrow Bank Returns 28:22 If Duffie Ran Global Finance 31:25 The Stablecoin Sandwich Problem 34:20 The End of CLS? 40:31 Nubank vs. JPMorgan Brought to you by Codex, the stablecoin foreign exchange specialist.

The 3.6% Scam: The Truth About Why Banks Are Terrified of Stablecoins | Omid Malekan

Behind closed doors, in Davos and DC, incumbent banks and challenger stablecoin companies are in the midst of a protracted fight. Should stablecoins be allowed to pay interest? Trillions of dollars are at stake. Which arguments on each side actually make sense? Will allowing stablecoins to pay yield really destroy the global economy? Omid Malekan [https://x.com/malekanoms] of Columbia Business School is regarded among insiders as one of the few scholars who understands both the traditional financial system and crypto deeply. He is the ideal guest for this moment. In this conversation, we strip away the rhetoric to reveal what is really going on. 00:00 Intro 01:03 Banks Terrified of Stablecoins 03:12 Support Stablecoins, Kill Lending 13:40 Bank of America Disingenuous? 22:58 Stablecoins Do Not Reduce Deposits 30:55 The WhatsApp Bank Run 34:33 Small Banks as Human Shields 49:49 Tether vs. JPM Transparency 59:02 Wall Street's Blockchain Lie 01:01:54 Tokenized Deposits Won't Happen 01:06:15 The Hidden Paycheck Tax Brought to you by Codex [https://x.com/codex_pbc], the stablecoin foreign exchange specialist.