I think Caitlin has done a better job than anyone articulating exactly why it is completely rational for fractional reserve bankers to be fearful of extremely efficient digital rails for highly levered and illiquid fractional banks.

Giving customers a way to run your bank 24/7/365 should scare the hell out of them. Especially if they could run to a bank like Custodia.

It’s interesting that she doesn’t seem to see that her own argument makes it inevitable that they had to refuse to approve Custodia.