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GM to all of you nutcases. It’s Crypto Nutshell #806 hodlin’ the line … 🪖🥜
We’re the crypto newsletter that’s more high-pressure than a control room trying to land a crippled spacecraft… 🌌🛠️
What we’ve cooked up for you today…
🏦 The banks don’t like this
🌊 A tsunami is coming
🥶 Cooling off
💰 And more…
Prices as at 2:40am ET
THE BANKS DON’T LIKE THIS 🏦
BREAKING: Stablecoins are real threat to bank deposits, says Standard Chartered
Stablecoins aren't just competing with banks anymore.
They're draining them…
That's the latest warning from Standard Chartered in a new report. The bank estimates that $500 billion will flow out of traditional bank deposits and into stablecoins by 2028.
And U.S. regional banks are the most exposed.
Why regional banks?
It comes down to how banks make money.
Most rely heavily on something called net interest margin - the spread between what they earn on loans and what they pay depositors.
Regional banks like Huntington, M&T Bank, and Truist get over 60% of their revenue from this source. If deposits leave for stablecoins, that income shrinks fast.
Investment banks like Goldman Sachs and Morgan Stanley?
They get less than 20% of revenue from deposits. They'll feel it a lot less.
The numbers
Tether and Circle run the two largest stablecoins. Together they dominate the market.
But here's the problem for banks: Tether holds just 0.02% of its reserves in bank deposits. Circle holds 14.5%.
That means when money flows into stablecoins, it mostly leaves the banking system entirely.
Standard Chartered estimates one-third of stablecoin growth will come from developed market bank deposits. With the market projected to hit $2 trillion by 2028, that's where the $500 billion figure comes from.
The legislation battle
This is why the CLARITY Act debate matters.
The bill would ban stablecoin issuers from paying interest - something big banks support and crypto firms oppose. (Obviously to protect the banks…)
Coinbase has already pulled its backing over the issue. And Circle's CEO called fears of stablecoin-driven bank runs "totally absurd."
“If stablecoin issuers hold a large share of their deposits in the banking system where the stablecoins are issued, that should reduce net deposit flight from banks… The idea is that if a deposit leaves a bank to go into a stablecoin, but the stablecoin issuer holds all of its reserves in bank deposits, there would be no net deposit reduction.”
Standard Chartered still expects the bill to pass by the end of Q1 2026.
But the pressure on banks is building either way. 🚀
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A TSUNAMI IS COMING 🌊
When Larry Lepard talks about Bitcoin, he knows what he’s talking about.
He’s a long-time macro investor, gold guy by background, and someone who thinks almost entirely in probabilities, cycles, and adoption curves.
He was very early to Bitcoin for reasons that have nothing to do with hype and everything to do with monetary history.
In his latest interview, Larry laid out how he thinks the next real move happens:
“When this next wave hits, it’s not going to $140k… it’s going to $250k or 300k or 350k.”
Why?
Because 2 factors are going to collide at once.
First, the Bitcoin shorts.
“All the shorts who have to cover or else they’re going to get their faces ripped off.”
Then the second wave.
“A whole new category of long degens come in… who lever it and go long it.”
That’s how you get violent moves to the upside. Fast ones.
Lepard isn’t pretending the next move up will be smooth sailing. He explicitly says it won’t be:
“From $400k, by the way, it’ll correct back to $150k.”
That’s not bearish. That’s just how speculative assets being adopted actually behave.
He points to Amazon as the closest analogy. A network-based asset that went through brutal drawdowns while quietly becoming inevitable.
“Either it’s going to take over the world or it’s going to die.”
And right now?
We’re in the phase where people are bored, dismissive, and smug.
“Not really looking like digital gold, is it?”
Lepard’s response is simple.
“Just wait… I’ll take the other side of that bet in two years.”
Bitcoin doesn’t move in straight lines. It moves in waves.
And when this one hits, it doesn’t arrive gently. 🌊
COOLING OFF 🥶
Today we’ll be taking a look the overall stablecoin supply.
Stablecoins are the backbone of crypto liquidity, used for seamless trading and instant cross-border transactions.
The chart below tracks the aggregate change in the total stablecoin market cap.
🟢 Increased stablecoin supply: increased demand and capital inflows into the digital asset space 🐂
🔴 Contractions in stablecoin supply: net capital outflows from digital assets 🐻
Two weeks ago, the total stablecoin supply sat at $266.93 billion.
Today it's $264.60 billion.
That's a $2.33 billion drop in the past 14 days.
Zoom out slightly - 2026 has seen stablecoin supply contract by $3.33 billion so far.
But context matters.
2025 saw stablecoin supply explode by roughly $77 billion.
A $3 billion pullback after a $77 billion buildup isn't capitulation.
It's consolidation.
Stablecoins aren't just digital dollars sitting idle. They're loaded capital, already on-chain, waiting for conviction to return. 🔥
CRACKING CRYPTO 🥜
How the SEC is Handling Crypto Cases 12 Months Into Trump's Presidency. A year into the second Trump presidency, the SEC has pulled back from major crypto cases and changed its priorities.
Tucker Carlson Presses Peter Schiff on Bitcoin as Global Reserve Currency. In a new interview, Tucker Carlson presses gold advocate Peter Schiff on whether Bitcoin could serve as a new global reserve currency, as Schiff brands BTC a bailout for early adopters.
Indispensable or irrelevant: Bitwise CIO warns of 3-year deadline for crypto adoption. The asset manager argued that without federal legislation, the industry has three years to become indispensable before political winds potentially shift.
Crypto payments adoption spearheaded by large businesses, PayPal survey finds. Four in 10 surveyed merchants already accept crypto at checkout, with roughly three-quarters reporting an increase in crypto sales last year.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
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Raremints (link) - Daily crypto news
Bitcoin Breakdown (link) - Daily Bitcoin news
Techpresso (link) - Daily tech news and insights
The Hustle (link) - Get Smarter on Business and Tech
Your Next Breakthrough (link) - Personal growth with Mark Manson
The Neuron (link) - AI trends and tools to keep you ahead
CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
What collateral type has been the dominant asset backing DAI since its launch?
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: USDC 🥳
While ETH was initially the primary collateral, USDC became the dominant backing for DAI by 2020-2021, at times representing over 60% of collateral.
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.