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 Intro01:07 The Bank That Couldn’t Fail03:53 Will Stablecoins Kill Lending?07:54 Private Credit’s Run Problem11:14 Too Safe to Exist18:31 Why USDC Can’t Run Wall Street25:21 The Narrow Bank Returns28:22 If Duffie Ran Global Finance31:25 The Stablecoin Sandwich Problem34:20 The End of CLS?40:31 Nubank vs. JPMorganBrought to you by Codex, the stablecoin foreign exchange specialist.