one of the most interesting things about the $USDH proposals is that we get to see issuers point out eachothers respective flaws
like this one where nick from agora calls out bridge banking with a small regional bank that could quickly hit scaling issues
this is a real cocnern given banks need to maintain certain equity to liability ratio
small banks have less equity so if their deposit (aka liability) base grows fast regulators step in and put the bank under heavy scrutiny/growth freeze
happened to the bank where my brother was working - they lost all their b2b customers and never recovered from it
like this one where nick from agora calls out bridge banking with a small regional bank that could quickly hit scaling issues
this is a real cocnern given banks need to maintain certain equity to liability ratio
small banks have less equity so if their deposit (aka liability) base grows fast regulators step in and put the bank under heavy scrutiny/growth freeze
happened to the bank where my brother was working - they lost all their b2b customers and never recovered from it
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