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We propose a physical realization of the two-channel Kondo (2CK) effect,where a dynamical defect in a metal has a unique ground state and twofolddegenerate excited states. In a wide range of parameters the interactions withthe electrons renormalize the excited double downward below the bare defectground state, thus stabilizing the 2CK fixed point. In addition to the Kondotemperature T_K the three-state defect exhibits another low-energy scale,associated with ground-to-excited-state transitions, which can be exponentiallysmaller than T_K. Using the perturbative nonequilibrium renormalization groupwe demonstrate explicitly that this can provide the long-sought explanation ofthe sharp conductance spikes observed by Ralph and Buhrman in ultrasmallmetallic point contacts.

Stable two-channel Kondo fixed point of an SU(3) quantum defect in a metal: renormalization group analysis and conductance spikes