Between immediate settlement and deferred systems: Are traditional risk models collapsing in the face of crypto reality?
At the Wyoming Blockchain Conference, Caitlin Long, CEO of Custodia Bank, issued a stark warning: financial institutions entering the crypto world with yesterday's tools are like someone trying to pilot a spacecraft with wooden wheels.
⚠️ The absence of traditional protective tools—such as discount windows and deferred settlement systems—means that any sudden downturn could turn into an immediate liquidity crisis. There is no time for maneuvering, and no room for deferral.
💥 As institutional treasury firms, laden with leverage, enter the market, the risk of contagion intensifies: a mass sell-off in a moment of panic could turn a correction into a crash, and a contraction into a crisis of trust.
📉 The latest Breed report leaves no room for random optimism: most new bitcoin treasury firms will not withstand the first real downturn unless they redesign their models to keep pace with settlement speed and market volatility.
🎯 The message is not just a warning, but a call for reinvention:
Those wishing to enter this market must abandon central bank tools and design models that breathe transparency, move at the speed of light, and withstand the heat of volatility.
🧠 Are we facing a moment of redefining institutional risk?
Or will the market teach newcomers the only way it knows: through trial, loss, and rebuilding?
