We do S&L with bitcoin just fine

The main problem with Bitcoin is that it's inelastic.² Its supply is set to be fixed. This means it cannot be the dominant form of money because it cannot be issued as credit to debtors who need money they don't presently have. This doesn't mean that Bitcoin can't serve as a form of money in much the same way that gold does, but Bitcoin's biggest weakness is that its supply is fixed.

We can do deposits to loans, and maintain the flex needed to support price function.  The bank is equity backed, but profits observable.   The system is automated by sand and electricity, so transaction costs near zero. The system may deflate as the bitcoin market share expands. But, works just fine.

In the sandbox S&L and bitcoin ledger are two of the components that connects to escrow router. As long as  bitcoin runs standard S&L  then any other bearer asset form on the escrow router can be priced in bitcoin. We know the business of the sandbox, got all these pedantics covered.