A research paper published this week quantifies what happens when bank deposits move at blockchain speed. The number is large enough to reshape how banks fund the economy, and the crypto industry is building the pipes without acknowledging the consequences. Summary A research paper published on August 25 found that tokenized deposits could reduce U.S. bank lending capacity by $580 billion if the technology reaches widespread adoption, roughly 5% of total bank lending. The mechanism is straightforward: banks lend against stable deposits, and if deposits can move on chain in minutes instead of days, the deposit base becomes less stable,…