On The Brink with Castle Island Weekly Roundup 10/10/25 (Luxembourg buys BTC, N. Dakota’s stablecoin, Salomon bros dust attack) (EP.675)
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Oct 10, 2025 This week's discussion dives into North Dakota's plans for a new stablecoin and Luxembourg's decision to invest in Bitcoin. The hosts explore the potential for stablecoins to cause bank deposit flight and question whether FDIC insurance is still relevant. They examine the risks of quantum computing for Bitcoin security and unpack a unique dusting scheme targeting dormant wallets. Additionally, ICE's investment in Polymarket and ongoing legislative efforts in Congress add layers to the evolving crypto landscape.
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Stablecoins Threaten Regional Bank Deposits
- Stablecoins are likely to drive deposit flight from regional banks by offering a perceived safer, more efficient store of value.
- Nic Carter and Matt Walsh expect consolidation of smaller banks and more lending outside traditional banks.
Protect Banks By Expanding Deposit Guarantees
- Consider pushing for broader deposit guarantees instead of fighting stablecoins outright.
- A blanket FDIC-style guarantee could protect bank franchises and let stablecoins be built on top of insured deposits.
Pull Payments Expand Stablecoin Utility
- Notabene's Flow introduces pull payments and a new interchange model for stablecoin networks.
- This shows product innovation will expand real-world stablecoin payment capabilities.