a) They are similar products banks/certain financial institutions utilize right now, just with corporate debt -- oh what can go wrong in a recession, right? b)

a) They are similar products banks/certain financial institutions utilize right now, just with corporate debt -- oh what can go wrong in a recession, right? b) Bank runs happened in 2008 (U.S.), 2010-12 etc. A lot of crypto companies buy insurance similar to what the government says, but lacking regulation and the government behind you makes it as you said problematic. But: banks are years old and keep making the same mistakes and failures. Big banks (not your corner side community bank that acts as intermediate and its job is community welfare and good relations) haven't changed. I'd be surprised if we avoid another bank related incident, if we enter a recession.