Bitcoin (CRYPTO: BTC) is down to $61,000, but crypto banking pioneer Caitlin Long argues the bigger story is unfolding inside the U.S. banking system.

Caitlin Long’s Tokenized Deposit Solution

Speaking on June 23 in a podcast with Scott Melker, Long detailed Custodia Bank’s new Hazel Network initiative, which she says bridges traditional bank deposits and stablecoins through a single tokenized infrastructure.

“When it leaves the perimeter of the network, it programmatically changes to a GENIUS Act stablecoin,” Long explained.

Unlike traditional stablecoins, Long said Hazel automatically routes funds back to the originating bank when assets return to the network, helping community banks retain deposits rather than losing them to external stablecoin issuers.

Long argued that many banks are increasingly interested in tokenized deposits because they provide clearer legal ownership structures than existing stablecoins.

She compared Hazel’s design to an electronic version of a cashier’s check, saying the framework provides stronger legal certainty for financial institutions.

The system also embeds compliance and operational controls directly into smart contracts, something Long claimed no major stablecoin issuer currently offers.

Bitcoin Faces Pressure

Markets remained under pressure as tech stocks sold off, South Korean equities hit circuit breakers and Bitcoin continued testing key support levels.

Host Melker highlighted growing calls for a potential move toward $59,000-$60,000 Bitcoin, though panelists argued long-term fundamentals remain intact.

Experts pointed out that market downturns often distract investors from larger structural developments happening across crypto and financial infrastructure.

“There are short-term stories and there are long-term stories,” Tilman said.

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