I spoke with the head of a community bank yesterday - initially about stablecoin policy, but the conversation quickly expanded to ways community banks and DeFi can work together. Years ago, under the Biden administration, I was a major proponent of a deal between MakerDAO and Huntington Valley Bank (since purchased by Citizens Financial), where a $100m loan participation agreement was finalized in 2022. Those funds went primarily to business loans and construction loans, carrying interest of 5-9% (2022-23 vintage fixed and floating rate loans). But that was DeFi financing real business formation and expansion in New Jersey, Pennsylvania, Delaware, New Hampshire, and Connecticut. Under the more clear rules today, I think this could be done again - or something similar - but at a larger scale. Many people around the world would eagerly get exposure to a diversified loan portfolio underwritten by a US bank with local knowledge, financing their local community. If you’re a US bank looking to explore crypto as a funding source or to manage concentration limits within your portfolio, please reach out. My inbox is open.