The Banks Are Building a Shadow Banking Network on Crypto — And Nobody Wants to Talk About It

The banks are confirmed to have built a shadow banking network on crypto. Nobody's talking about it because nobody can comprehend it. We have Bank of America, JPMorgan, Wells Fargo, and Citibank themselves holding a private meeting to build a shadow banking network on crypto. And for some reason, people are— I don't know if it's too scared to talk about it. I don't get it. I don't know why this is not mainstream media, but we're going to expose the entire thing in this video. And this is very new stuff. So if you copy this content for your social media, please just tag me. That's all I ask. And just to let you guys know, I'll be making more long-form videos, but not as frequent as my Instagram. Follow me on Instagram, Alexander E. Lorenzo. for the latest up-to-date stuff that I've been doing. As you can see, I'm on the Keys right now. We're in Key West, just taking a little vacation with the family. And I decided to pop in and make this video because it's a little bit too important. And I do hope one day that you guys all get to financial independence, be able to just do a vacation whenever you want, work while you're on vacation. You know, I'm very productive. It's actually fun to work. I don't run from work. So as you can see, I'm doing it out here. And yeah, bear market or not, financial independence doesn't need to be reliant on a bull market altcoin season. If you know what you're doing, if you have the right strategy, If you're set up like a professional, it doesn't matter the market condition. And that's what a lot of crypto people have a problem with. Their strategy doesn't work in the bear market. Mine does. If you want to get access to my entire altcoin database, my entire checklist on how I find my altcoins, how I've been able to consistently repeat profit over and over again, no matter what market condition, go to the pinned comment below or in the description. You'll see it for yourself. And by the way, I give out all my altcoin database research for free. It's basically like 40 to 50 hours plus my picks directly myself in the altcoin database for free. Go to the link below. So let me establish this first. According to the Wall Street Journal, JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are all in talks to develop the first joint US dollar stablecoin. That's not just some random meeting. The talks include Early Warning Services, which is a company that operates Zelle, Zelle, and a clearinghouse, which is a real-time payment network that these banks co-own. Zelle, Zelle, Zelle. Now just think about what I said for a second, okay? Understand the gravity of what's happening here. The 4 biggest banks in America Are building a stablecoin network on top of the infrastructure they already control. Zelle processes $1.2 trillion in just 2025 alone. 151 million enrollment accounts, guys. They're essentially taking Zelle and putting a blockchain behind it. And it gets even deeper. Wells Fargo just filed a trademark for something called WFUSD with the U.S. Patent and Trademark Office. That filing covers cryptocurrency exchange operations. payment processing, digital wallet infrastructure, and blockchain transaction settlement. That's a stablecoin, a legitimate stablecoin. They're literally trademarking their own the same way we have Circle with USDC and Tether. They're not hiding it. They're building it wide in the open. Then we have the CEO of Bank of America going on national television saying, quote, we will go into that business. He's literally talking about the stablecoin business. He said they have the capacity to create a full dollar-backed stablecoin. He said it publicly. Then we already know that JP Morgan has a deposit token. They already launched it on Base. That's obviously not a prediction. We covered that on this channel before. This is not theory. This is real business moves with real trademarks and real public statements from real people. Now, to understand what I'm saying, you have to address the background of what happened in the past to see their playbook play out over and over again. It's kind of the same pattern of what they do. If you could read between the lines and you studied your financial history, which I recommend everybody does, what they're doing right now is the exact same playbook that they did in 2008 when they crashed the market with the housing market bubble. So they're gonna do it again. And the reason why this is important is because at the start of a bubble, when the bubble starts, leads to like a massive bull run. So in 2008, it was 7 years of bull market before the bubble popped. And I believe that that just happened like a couple of months ago, like the start of it. So the first thing you have to understand is a concept called shadow banking. So bankers have strict regulation. They can't just do anything they want, obviously, you know, because the government restricts them. So what they do is they set up shadow companies and a shadow company is basically owned by the bank, but they're allowed to bypass regulation. And they did this in 2008 to sell junk mortgages, like trash mortgages that are really, really bad. This led to the collapse of the Ponzi scheme. They handed out garbage mortgages, bundled them together, sold them as gold, and made billions while regular people lost everything. The shadow bank was the key though. You have to understand this. It was a subsidiary, a separate entity that didn't have the same capital requirements as the actual bank. So they could take on insane risk and pretty much own it through the parent bank technically, but they weren't on the hook for the risk. This is how they got away with the 2008 market crash. It was literally legal. It was a legal thing, so they couldn't get held accountable. It was just a flaw in the system. A loophole. So obviously when this happened, there was a lot of people that got rich and a lot of people got poor, right? So the banks got rich, the people that knew the loophole and exploited others got rich and made a whole bunch of money. But then people that didn't understand what was going on, they lost everything. They literally went bankrupt, and it was devastating. They called this a crash for a reason. So the government intervened and they wanted to stop this from ever happening again. And so this is what they did. They passed something called the Dodd-Frank Act. And specifically, if you look at Section 171 of the Dodd-Frank Act, known as the Collins Amendment, This was a safeguard. It was the one law that said, look, banks cannot create separate subsidiaries and bypass capital requirements ever again. This was a direct response to 2008. And it took a whole bunch of time too to even— it took like a year of legal battles battling the banks for them to even pass this law. Now, this is what nobody's talking about. This right here is what nobody— I don't even think people comprehend this, right? Some people don't even want to talk about this. But basically, in July 2025, President Trump signed into law the Genius Act. Right? I'm sure you heard of it. And the Genius Act basically allows stablecoins to be created legally by banks. So a bank can now legally create a stablecoin. It had bipartisan support, massive support, meaning both sides, Republican and Democrat, supported this to make it happen into law. And it was like in July. It actually initially led to the massive run-up of Bitcoin to go into like $120K. So it was a very important pivotal thing for cryptocurrency history. Banks can create stablecoins legally in law, like a legal regulation. Really important, probably one of the biggest bills you'll see in the next 100 years. The only one bigger than that is the Clarity Act, which we will not see. They're creating financial infrastructure for our entire world right now. And so you're living in a once-in-a-lifetime opportunity. Well, the more important part, buried within the fine print of the Genius Act, there's one line that changes everything. In the capital standards section, it literally says, and I quote, Section 171 of the Financial Stability Act of 2010 shall not apply. Are you hearing what I'm saying? So essentially, they avoided the safeguards of the Dodd-Frank Act on the creation of stablecoins. So they're literally allowed to bypass capital requirements, create subsidiaries, and do everything they did in 2008 on stablecoins legally written into law. That sounds like another 2008, doesn't it? And remember, there was a 7-year period of the bubble expanding as a bubble before it popped. I'm not calling the downturn of the market— actually think exact opposite. I think we're at the start of a crypto bubble. The same exact structure they used in the past: shadow banks, subsidiaries, Separate entities, except now it's legal and it's on the blockchain, which nobody understands. Now before I move on, let me just go over there. You see that bridge over there? It's not a bridge. Why'd I say bridge? I'm talking about— what are they called? Pier. A pier. I'm gonna go on the pier. Let's switch scenes. Let's go look at the view real quick. Now as we're walking over there, I do feel led to say this. I want to be very clear with you guys. If you learn the concept of risk management, you can really legitimately survive the bear market and do this. I'm doing it. I'm right in front of your face. I'm doing it. If you develop a cash flow in crypto, in combination with Savage Risk Management, you'll outcompete all of your friends in crypto, every single one of them. While they have to go get jobs, you can do whatever you want. I'm literally working. Look at this, look at the pier, look at that. And this is not to brag. I know I was at where you guys are at, man. I get it. I used to drive to work in my car and I would put on crypto videos and I would watch them on my hour drive. I would eat lunch, watch crypto videos. I get it, I was there. But you have to do this in a professional way to get out of it. Like, that's the only way you'll start Realizing through your crypto journey, it's not crypto, it's the fact that you were never professional. You didn't treat it the way it was supposed to be treated, and so you got exposed. And that's okay. If you can take it to the chest and change, then you'll actually win. If you make excuses, leave crypto, I cannot help you. The only people that win are the ones that change and do the right thing. Now, changing is not as hard as you think because they're both painful, right? Staying where you are right now is painful. The hypothetical I always give is I play video games, right? And there's sometimes where I do not want to play. It's almost like work. It feels like work to play the video game, right? Some of you probably experienced that. It literally feels like work. Like it feels like you're actually like striving to do it. You don't want to do it. Stressful, right? So how does that happen? How does something that's supposed to be leisure, pure fun, feel like work? The reason why is because that energy you put into that is the same energy you could be putting into productivity. It's the same. You can find joy in changing yourself. And that's what I mean by change. And I always talk about this concept called the 2 pains, right? You have the pain of staying the same Right? Working the 9 to 5, right? Look, the 9 to 5 is not bad. It's just that you want more, right? Everybody makes it look horrible. It's not bad. You just want more, right? That's pain, right? That's expectations not met because you don't want to change your life. That's a massive pain, right? There's the pain of a financial bill coming up, right? You have to change your tire because they popped or something, or somebody has a medical emergency and you can't afford it. That's a pain, right? The pain of not living in a place that you want to live. These are all pains. But the thing is, if all you do is just change, right, you have to ask yourself that question. Are you actually— people are like, oh man, I lost money in crypto, crypto is a scam. And they put half an hour of research a day and their research was watching YouTube videos. What did you expect? Your strategy is a scam. You really have to ask yourself the question. I want you guys to scale it in your crypto research. Where are you, a 0 or a 10? And see, the thing is, I'm gonna blow your mind. Some of you are prideful and you do a little bit of research and you think you're smart and you don't even know what a 10 looks like. You have no— you haven't even gotten into the realm of what real genuine legitimate research even looks like. I know that because there's some people in my group— Jesse, I just hired— I hired Jesse, not just hired, like months ago— and he thought he knew what research was. He thought— and I'm not laughing, I'm just being honest— like, his paradigm of what true research is completely shifted. So when I say to scale it from 0 out of 10, scale from 0 out of 10. But if you're in your own world, in your own bubble, you don't even know what a 10 looks like. So humble. If you just do the work— like, this is the second pain. So the second pain is, can you take the correction? Can you actually change? And can you actually develop a legitimate professional strategy? Or are you gonna keep gambling? That's painful because what's gonna require is for you to humble yourself, which hurts, right? Lower yourself, listen to somebody that knows more than you, right? Which hurts. And then actually put in the dedicated focus and research, which hurts and takes a lot of time. It takes a lot of discipline. That hurts. So pick your pain. You could pick the pain of poverty, or you could pick the pain of discipline. Both of them hurt, and they require the same amount, the same exact amount of energy. It's up to you. That's what I always say. Like, like, man, I— that is the difference between Alex 7 years ago and Alex now, is that I choose the pain of discipline. I choose the pain of not FOMOing when everybody's freaking out about buying coins. I keep the dry powder. I— the pain of selling too early, I choose it because it pays for vacations. You understand? So let's get back to it. By the way, my boy Jesse found the Dodd-Frank stuff really interesting. So basically, banks, they crashed the 2008 market by creating these shell companies called shadow banks, and they did it by selling junk mortgages. They took on way too much risk, extreme amounts of risk to make it happen. And the only way they legally did that is by creating something called shadow banks. And so to basically stop that from ever happening again because of how devastating it was, they passed something called the Dodd-Frank Act. And it just so happens to be that they put in the specific genius act that was passed in July that allows banks to create stablecoins. They essentially removed that. So the capital requirements, the shadow banks are legally allowed to happen on stablecoins right now in law. Legally, legally right now in law. So as you can imagine, they're going to take advantage of it. They're going to take a lot of advantage of it. And another positive to this as well is that crypto is going to get adopted. This is actually— a lot of people say it's negative, but it's like, it's actually like really positive news. Nothing you really do— they own the financial system, right? So it's actually positive if you position yourself in investments before it happens, right? It's really positive for you to make money. You can't get— like, people try to like, you know, revolt against the government. It's like, what are you doing, bro? How about you just move with them and make money? What are you trying to accomplish here, right? Like, what are people trying to accomplish? If you want to change something, how about you aggregate the resources to be an actual person that can change something? Or you could lobby for $500 million to change Washington if you wanted to. How about you make some money and do something instead of crying about it on the internet? Make money, right? So this guarantees— when you see this type of like manipulation, call it manipulation, but it's not, it's law. When you see this, this means that it's guaranteed. That's what, that's what it means. We're talking about very hidden private stuff that's kind of like guaranteed. Crypto adoption is guaranteed. The banks have flipped it in their favor. Are you kidding me? The United States government literally eats off this. They get paid. Stablecoins pay off government debt, sir. They pay off government debt. And they're allowed to create shadow companies when they're not allowed to create shadow companies on any other financial asset class. What do you expect? They're illegal. They're allowed to do it, the stuff that they want to do but they can't do because they're Inhibited by regulation, they could do it on stablecoins. What do you think they're going to do? They're going to do it. So let's give out a hypothetical of what that actually means. Let's say a bank creates their own stablecoin subsidiary, right? You give them $100 grand because you want a stablecoin for yourself to operate in cryptocurrency. They give you $100 grand in their stablecoin. Under the Genius Act, what they usually do is they hold— depending on how the stablecoin is actually labeled, that's for another video, or it gets really crazy. You can do fractional reserve banking on stablecoins if it's labeled a deposit token. I'm not going to go into that, but they're supposed to hold a 1-to-1 reserve. So, all of that money actually goes back into the government to, you know, purchase, repurchase, like, government debt, market funds, repurchase agreements, central bank reserves. So, your $100 grand goes back into government debt, right? We just talked about that. It's yield, risk-free for them. So, your money is working for them. In the past, what they would do is you would deposit $100 grand as a deposit, and then they would lend out your money. Now, it's just way better for them. They get higher yield. They give it right directly to the government and get a guaranteed ROI instead of having to loan it out to anyone. They don't have to loan it out. They could just give it directly to the government as soon as you get that stablecoin. This is significantly better for banks. Now, where it gets really interesting is the fact that in the Genius Act, it said that stablecoin issuers cannot pay interest to holders. But what happened is through crypto exchanges, they offered rewards anyways through third-party programs and affiliate companies. This actually started a massive war. Over 200 community banks sent an emergency letter to the US Senate saying crypto companies are exploiting a loophole. One of the biggest banking institutes in America estimated this could be a $6.6 trillion deposit outflow. They were literally saying that $6.6 trillion would leave bank accounts and go into crypto because of how crazy this is. That's deposits leaving banks and flowing into crypto. Let me say it again. I have to say it again. People are not comprehending it. Think about what that means for the crypto ecosystem as a whole. And then on March 20th, 2 separate senators reached a deal with the White House on this exact issue. They agreed in principle that passive yield, just holding a stablecoin and getting paid for it, is banned, right? Just holding it and getting paid for it, doing nothing, is banned. That's what they basically said. They came to a mutual agreement. But activity-based rewards, meaning you actually use crypto, you transact, you move money, that's still allowed. Now, the crazy part about this is that they don't even know how crypto operates because all of these smart contracts are moving your money automatically. So for you, it's passive, but from the legal law, it's not. It's a joke. So what I'm saying is we're gonna get the yield, we're gonna— everybody's gonna get what they want. That's what I'm trying to say. It's literally passive to the user. So if you put your money into crypto and you hold it, it can be moved automatically. Are you seeing what I'm saying? People are saying even the negotiations are 99% resolved when it comes to the Clarity Act. This is all conversation about the Clarity Act because it's supposed to, you know, fix all this yield issue. All these yield issues are supposed to be solved by the Clarity Act. So, like, just think about that for a second. Think about how that's playing out. The crypto world is automated. It's— there is no human intervention. Smart contracts move automatically. So this agreement is— it's like a joke. I don't know. It's like almost like a charade or something. They're doing something behind the doors that we don't even know. And it's going to be crazy. I just know that this is the biggest piece of financial regulation in the past 100 years. And if you're not paying attention to it, like, it's crazy. You should be paying attention to it and doing extreme amounts of research. You're never going to get this again. Nobody's going to get this again for a long time. Now, all this recent stuff is the Clarity Act, and we're going to touch that for sure. There's actually— I just got some research. I'm not going to expose it just yet. But basically, believe it or not, these banks are even allowed to invest in altcoins potentially if they're commodity. Because they're not allowed to invest in securities. So all these cryptos that are commodities are going to be invested in. The Clarity Act is being argued back and forth. They're saying that there's going to be a markup in April. Nobody knows, uh, for sure. It's moving fast. I predict towards the end of the year is we're gonna have anything significant. 2027, January 2027, or the end of this year is when things are going to really start to pick up. So the reason why this matters for you, and you have to understand this, is that stablecoin yield programs and activity-based rewards, all of it is designed to bring people into crypto. If they can make yield on things in crypto, they're going to do whatever it takes with marketing to get people in crypto. So this is trillions of dollars of liquidity from the banking system into public blockchains, guys. You have to think about what that is. So all of this stablecoin stuff is just adoption vehicle that's going to basically propel crypto in general. And through these subsidiary companies, there's so many hypothetical scenarios of where they actually can inject the money into altcoins. So there's your altcoin season. Everybody's been waiting for altcoin season. We didn't have one this cycle. The Clarity Act basically inhibited that completely. It looks like the Clarity Act is probably going to get done before the end of the year. That's my best guess. Nobody knows for sure. The Clarity Act will give essentially clarity on everything, including the yield for stablecoins, which is the big kahuna, right? Because if we have yield on stablecoins, that means they're going to manufacture people to come into crypto to get the yield on the stablecoin, right? And if they do that, well, these subsidiary companies that are like shadow companies that they legally baked into law are going to be used to create and purchase altcoins themselves too. So the banks buying altcoins— I mean, humans, us people buying altcoins— the banks basically building marketing systems to Get people to buy altcoins. I mean, we're talking about altcoin. Look, this is what I think. Since we didn't have an altcoin season this cycle, that means that next cycle we should have probably a bigger altcoin season. That's my best guess, is that it should be bigger. It's like potential energy cooped up. That's what I see specifically with the altcoin season. So good, delay it, do nothing. I don't want the market to go up because it gives me more time to accumulate capital and dump it into the market as aggressively as I possibly can for the double altcoin season that's going to happen next year. So if you're really here, if you guys have been really here with me for a while, my hat's about to fall off. Man, it is going to be— this is it. Like, you know, it's actually kind of sad, to be honest with you, because for a long time I had a massive strategic advantage of being first, right? The first mover advantage is real. It's scientifically proven. I had a massive strategic advantage as a business. I was always first. Nobody can keep up because I knew stuff that nobody knew. As soon as this comes into play, it's over. I won't be first anymore. I'll just be a normal market. All stock market's going to come to crypto. It's kind of sad, to be honest. So let's bring this home a little bit so you understand what's going on. We have the 4 biggest banks in America building a joint stablecoin network on Zelle. The Zelle infrastructure, they already own it, okay? And it's already happening. The Genius Act exempts them from the exact thing the post-2008 safeguard was supposed to prevent. They pretty much took it out of stablecoins to allow shadow banking. We owe— 200 community bank leaders are sounding the alarm of how crazy this loophole is. And one of the biggest institutions in America estimated $6.6 trillion in potential deposit outflows flowing into crypto. Liquidity is coming to the blockchain whether you like it or not, whatever your bubble says. Whatever your personal feelings are, liquidity is coming. If you're smart, not only will you position yourselves— you know, a lot of people ask that question, what do I buy to take advantage of this? I purposely ignore it because if I say what you're going to buy, you're going to get wrecked and you're not going to learn anything. What you should be doing is investing in research, man. You should be investing in how to research. You should be buying books. You should be doing whatever it takes to learn crypto before this big flood comes into play, because that is the one limiting factor. It's not the altcoin, man. It's easy. It's your risk management. It's all the other intangible factors. Where people don't make any money off crypto and give up. I highly suggest you guys take advantage of my free system. We give you the exact altcoin research system for free, for free. It's a 7-day free trial, and then after that it's $1 a month. Link is in the pinned comment below. We give you the exact frameworks, methodologies. I turned $7,000 into $5.2 million, a little bit more than that now, probably closer to $8 million doing this exact strategy. It survives bear markets, it survives bull markets obviously, and makes a lot of money in bull markets. I give you the entire— like, I give you everything. I give you my actual altcoin database, the coins I've already researched and the ones that I've hand-selected. I give you my buy and sell calls in the pinned comment below. 7-day, uh, trial and $1 a month after that. So if you don't like it, cancel it after— before the 7 days, you don't get charged, if that makes sense. I highly suggest you guys take advantage. I thank God for the position I'm in to be able to do this, and I appreciate you guys for watching. Be easy. I love you guys. Talk to you later. Peace out. Bye.