Latest / The Paul Barron Crypto Show / White House Backs Stablecoin Yields with FACTS!🔥MASSIVE Crypto Catalyst🚀Chris Perkins INTERVIEW

Transcript

White House Backs Stablecoin Yields with FACTS!🔥MASSIVE Crypto Catalyst🚀Chris Perkins INTERVIEW · The Paul Barron Crypto Show

0:00
Speaker 1: A massive development in the Clarity bill. This of course
0:03
Speaker 1: is going to be a breakdown. I've got a special
0:04
Speaker 1: guest coming in today to kind of talk about all
0:06
Speaker 1: this good stuff. I do want to thank our sponsor,
0:09
Speaker 1: and that of course is tangentm And this is where
0:10
Speaker 1: you guys can get into self Custy and this is
0:13
Speaker 1: one of the things that I recommend anybody in crypto.
0:16
Speaker 1: This should be on your checklist to get in and
0:18
Speaker 1: try self Custy if it's your first time. Very easy
0:21
Speaker 1: to set up. Just go over to tangent dot com.
0:23
Speaker 1: You can get in on their program, get those cool
0:25
Speaker 1: eastercolored cards there. But it is a place where you
0:28
Speaker 1: can get a hardware wallet that works like a credit
0:31
Speaker 1: card with your phone and it is very easy to
0:34
Speaker 1: set up, super secure, one of the best ones out there.
0:37
Speaker 1: Use our link download it's going to get you an
0:38
Speaker 1: additional discount and these things stack so if they have
0:41
Speaker 1: any offers on the website in addition, you're going to
0:44
Speaker 1: get the PBM discount as well, So check it out.
0:47
Speaker 2: Use that.
0:47
Speaker 1: I want to bring in our guest today, and of
0:49
Speaker 1: course that is Chris Perkins, who is the CEO over
0:52
Speaker 1: at two fifty Digital asset management. How are you, Paul,
0:56
Speaker 1: Thank you for having me. Great to have you. I
0:57
Speaker 1: want to talk a little bit about where the market
1:00
Speaker 1: is right now. I was looking at your Twitter account
1:02
Speaker 1: right there. Take the geopolitical boot off the neck of crypto.
1:06
Speaker 1: Are we in a position right now where you feel
1:08
Speaker 1: that this has maybe reversed our bottom? What do you think?
1:12
Speaker 2: So?
1:12
Speaker 3: I think the market's been searching for a bottom for
1:14
Speaker 3: a very long time, and I think that was still
1:17
Speaker 3: related to the aftermath of ten ten when retail got
1:20
Speaker 3: really hammered. Layer on top of that a lot of
1:22
Speaker 3: the geopolitical stress that we've seen, and like I said,
1:26
Speaker 3: as these fundamentals continue to improve, sediment has been really
1:30
Speaker 3: bad and it's actually a very constructive investment set up.
1:34
Speaker 2: Now.
1:35
Speaker 3: I don't have a crystal ball. I expect still near
1:38
Speaker 3: term volatility. You know, when you have the President of
1:40
Speaker 3: the United States talking about destroying civilizations? Could that be
1:44
Speaker 3: pretty bad for markets in the short term? Absolutely, and
1:48
Speaker 3: so near term expect volatility. That said, the resiliency of
1:52
Speaker 3: this asset class, despite you know, the rhetoric and the
1:56
Speaker 3: geopolitical stress, is very strong. And I think what you
1:59
Speaker 3: saw yes yesterday was as that geopolitical stress abated. You know,
2:04
Speaker 3: crypto almost like a coiled spring. Because again you mentioned
2:08
Speaker 3: it right away, Clarity Act, right, the Clarity Act is
2:11
Speaker 3: I'm feeling very very good about the regulatory certainty right now.
2:15
Speaker 3: One thing people may not have noticed was yesterday the
2:18
Speaker 3: White House released the CEA Report, which was a report
2:23
Speaker 3: of economists. Right, that was an important stepping stone to
2:28
Speaker 3: navigate this interest crisis that we've been dealing with in
2:32
Speaker 3: clarity paving the way for the passing of the bill,
2:35
Speaker 3: and so that was a material step forward. Long story short,
2:39
Speaker 3: I feel that the investment environment is very constructive, improving fundamentals.
2:44
Speaker 3: Really bad sentiment. That's when you want to think about it.
2:47
Speaker 3: Of course, always be long term focused.
2:50
Speaker 2: Can't tell you what's going to happen in the near term.
2:52
Speaker 2: I mean, there's just so much volatility, so many things
2:54
Speaker 2: could go right or wrong.
2:55
Speaker 1: Well, and I think to your point, and also to
2:57
Speaker 1: the topic on the Clarity Act, the fact that the
2:59
Speaker 1: White put out this report, just so everybody knows, this
3:03
Speaker 1: was a very extensive report that was not necessarily authored
3:06
Speaker 1: by the White House. This had universities involved, We had
3:09
Speaker 1: all sorts of analysts and economists looking at this this
3:12
Speaker 1: was a much bigger analysis and the fact that they
3:16
Speaker 1: actually made the statements in that report that the banks
3:20
Speaker 1: had grossly overstated the impact not just overstated, but grossly overstated.
3:25
Speaker 1: Do you think that gives it credibility in DC to
3:28
Speaker 1: the point where you don't because right now it's a
3:30
Speaker 1: partisan issue in most cases. Oh well, that's the Trump
3:33
Speaker 1: White House just putting out more fud. You know, that's
3:36
Speaker 1: against the banks. What do you think and how does
3:38
Speaker 1: this play out? Yeah?
3:39
Speaker 3: I think people are saying, you know, why is coinbased
3:42
Speaker 3: on the banks?
3:43
Speaker 2: Why are they dictating this bill?
3:45
Speaker 3: I think the fact of the matter is is that
3:46
Speaker 3: you need the votes to pass the bill, and in
3:50
Speaker 3: order to achieve those votes, you have to go up
3:52
Speaker 3: to certain senators and say, sir, ma'am, you know what
3:54
Speaker 3: does it take for you to support this bill. And
3:57
Speaker 3: even on the Republican side have had numerous discussions with
3:59
Speaker 3: Republicans and they're like, I cannot have this bill hurt.
4:03
Speaker 2: My community banks. I need my community banks. And so then.
4:07
Speaker 3: Okay, guys, show me that it's not obviously you know,
4:11
Speaker 3: if you know anything about stable coins and community banks, frankly,
4:14
Speaker 3: you know, look, community banks have been under a lot
4:17
Speaker 3: of stress way before we even had stable coins, and
4:20
Speaker 3: so this report what we already knew that stable coins
4:25
Speaker 3: are just going to be moving money around within the system.
4:27
Speaker 2: It's not going to hurt community banks personally.
4:30
Speaker 3: I think if they get in front of technology, it's
4:33
Speaker 3: probably going to be an actual unlock for us.
4:35
Speaker 2: So this report proved.
4:36
Speaker 3: That, Yeah, the community banks, they're going to be fine
4:39
Speaker 3: with stable coins, and so let's move forward, and again
4:42
Speaker 3: it eliminates an important hurdle that was holding things.
4:45
Speaker 2: Up and hopefully gets those votes together.
4:48
Speaker 1: Yeah, I think the key here right now when you
4:51
Speaker 1: look at what we're seeing here on some of the
4:53
Speaker 1: prediction markets Clardiac signed in the law twenty twenty six.
4:57
Speaker 1: Even though it has been somewhat sideways, I feel this
5:00
Speaker 1: report hasn't had time to set in just yet. Remember
5:03
Speaker 1: that Congress is off and is just going back this week,
5:06
Speaker 1: so maybe we'll start to see a little bit of
5:09
Speaker 1: movement in that area. If there was one thing that
5:13
Speaker 1: we get past. Do you think we could get a
5:15
Speaker 1: surprise maybe coming out of this negotiation going into the
5:20
Speaker 1: Senate vote where yields come back on the table.
5:23
Speaker 3: You haven't seen a lot being broadcast around the yield
5:27
Speaker 3: conundrum right now, because I think that both sides have
5:30
Speaker 3: reached an agreement and if it gets too public then
5:33
Speaker 3: people may try to rip it apart. So I think
5:35
Speaker 3: it's tenuous at best. Could it break for sure? And frankly,
5:39
Speaker 3: the whole.
5:40
Speaker 2: Thing is sad.
5:40
Speaker 3: We already had a genius bill. Why are we talking
5:42
Speaker 3: about stable coin yield here? I wish we had been
5:46
Speaker 3: able to move past this. Anything could happen, but I
5:49
Speaker 3: think this was a very positive step forward and for
5:51
Speaker 3: now everything's holding. I guess it's kind of similar to
5:54
Speaker 3: the Iran situation, but you know, both the very tenuous rank.
5:59
Speaker 1: Speaking of the Iran situations start up, most of course
6:02
Speaker 1: proved that we need a push for more stable adoption,
6:06
Speaker 1: and that was, of course what's happening right now with
6:08
Speaker 1: them say hey, they're going to accept bitcoin as the
6:11
Speaker 1: transactions to go through, which is a fie funny office
6:14
Speaker 1: to get there. But point being is this starts to
6:17
Speaker 1: really separate I think the goods in terms of crypto,
6:20
Speaker 1: because it starts to elevate it in the sense of
6:22
Speaker 1: having a neutral asset. What was your opinion when when
6:26
Speaker 1: you first heard that, did you think that was good
6:28
Speaker 1: for crypto, good for bitcoin? What was your opinion?
6:30
Speaker 3: You know, when I first heard the reports around the
6:32
Speaker 3: Iranians accepting stable coins, I was like, you know, I
6:36
Speaker 3: actually I don't know if you know this bot. I
6:37
Speaker 3: come from a national security background. I fought in Iraq
6:39
Speaker 3: and I'm a marine, and I was kind of thrilled.
6:42
Speaker 3: I'm like, yeah, let them buy our treasuries and then
6:45
Speaker 3: see what happens when the United States government freezes and
6:49
Speaker 3: seas is, like they've done many times, even even with tether.
6:51
Speaker 3: Bitcoin you got to think of it almost like gold, right,
6:55
Speaker 3: and in places like Iran, in bad countries, countries we
6:59
Speaker 3: don't agree with.
6:59
Speaker 2: Do they gold?
7:00
Speaker 3: Yes, they mind gold. Can we stop them from doing that? No,
7:03
Speaker 3: it's naturally occurring in there. I think that it's very
7:08
Speaker 3: natural for bitcoin to emerge with this utility, but I
7:12
Speaker 3: think it's part of a bigger theme. When you step
7:15
Speaker 3: and again, this doesn't make bitcoin good or bad, it's
7:18
Speaker 3: just tech, right, But when you step back and you're like,
7:21
Speaker 3: what's going on here? What's going on in the world
7:26
Speaker 3: is that we're moving into a trustless, permissionless world. Alliances
7:31
Speaker 3: are breaking down, and what better asset to emerge in
7:36
Speaker 3: this real politic world, this world of trustlessness and permissionlessness,
7:41
Speaker 3: than something like bitcoin and something like digitalized its crypto ethereum.
7:45
Speaker 3: It's it's it's a natural next step when you really
7:48
Speaker 3: step back. Tire based system is based on trust. The
7:53
Speaker 3: crypto based system is not based on trust. Trust is
7:55
Speaker 3: breaking down absolute long term tailwent.
8:00
Speaker 1: Yeah, looks good for I think the market in general,
8:02
Speaker 1: and also I think starts to open up the eyes
8:04
Speaker 1: of a lot of countries that are now starting to
8:06
Speaker 1: look at this as that transactional asset that can do
8:09
Speaker 1: exactly what you're talking about. You look at stable corren
8:13
Speaker 1: regulation implementation around the Genius Act. This is now going
8:16
Speaker 1: into law. So we're seeing about timeline wise about seventy
8:19
Speaker 1: three percent. Seems like we should be much more along
8:24
Speaker 1: here with this Genius Act was passed last year. What
8:26
Speaker 1: do you think is holding up some of these implementations.
8:30
Speaker 2: I mean, these things take time.
8:32
Speaker 3: I went through Dodd Frank and after the Gold financial crisis,
8:35
Speaker 3: as at Lehman Brothers, we saw Dodd Frank get passed,
8:38
Speaker 3: and you know, years and years later, all of those
8:41
Speaker 3: rulemakings were still we were still working through and I
8:44
Speaker 3: don't even know if they finished them by now, long
8:46
Speaker 3: story short, Genius Act was a game changer. I think
8:51
Speaker 3: is opened up a new world of institutional adoption. I
8:55
Speaker 3: personally believe that this is going to perpetuate the US
8:59
Speaker 3: dollar as a global reserve currency for years and years
9:02
Speaker 3: to come. And so even though I smoke a couple
9:05
Speaker 3: of minutes ago around this decoupling, trustless, permissionless. While governments
9:10
Speaker 3: may be like, you know what, I want to reduce
9:12
Speaker 3: my dependency and the dollar, when you go underneath and
9:17
Speaker 3: you talk to the people, there is an insatiable demand
9:21
Speaker 3: for US dollars as a store of value. Right, Do
9:25
Speaker 3: I want my local currency that's subject to manipulation by
9:28
Speaker 3: the corrupt government or dollars? I want dollars every single time.
9:34
Speaker 3: And there's utility that comes with dollars. So this bill
9:37
Speaker 3: is really going to and I think words are going
9:38
Speaker 3: to be thought over this frankly, but long term, I
9:42
Speaker 3: think the dollar is going to emerge with even greater strength.
9:45
Speaker 2: It's our greatest export.
9:47
Speaker 3: It's going to become even more ubiquitous and again, insatiable
9:50
Speaker 3: demand a cretael well.
9:52
Speaker 1: And you look at the demand for stable points in general.
9:55
Speaker 1: Obviously this is going to go into a lot of
9:57
Speaker 1: emerging countries where they have no necessarily had access to
10:01
Speaker 1: the dollars. So this is going to start to change,
10:03
Speaker 1: and I think it also helps a lot of those
10:05
Speaker 1: communities and being able to leverage out and maybe much
10:08
Speaker 1: like what mobile technology did for a lot of these
10:11
Speaker 1: countries as well. So interesting take there. Hey you've got
10:15
Speaker 1: a well actually there was a tweet out and also
10:17
Speaker 1: just some updates on Franklin templan around this acquisition. This
10:22
Speaker 1: is the dedicated crypto unit that you're going to be leading.
10:25
Speaker 1: Can you explain a little bit more about the fund,
10:28
Speaker 1: the program itself, explain what you're going to be doing
10:30
Speaker 1: over there?
10:31
Speaker 2: Yeah, one hundred percent.
10:33
Speaker 3: So we're spinning out and we announced the spinout of
10:37
Speaker 3: our liquid funds at a current company we now set
10:42
Speaker 3: back in January, and what we announced in April first
10:46
Speaker 3: was that Franklin Templeton is going to be acquiring the
10:50
Speaker 3: liquid strategies that we've spun out, the team and the team.
10:55
Speaker 2: Along with it.
10:56
Speaker 3: So I could not be more excited. As you step back,
11:00
Speaker 3: why are we doing this? Why Franklin Templeton. Well, first,
11:03
Speaker 3: from a values perspective, from a vision perspective. Jenny Johnson
11:08
Speaker 3: and the Franklin team have been in the space since
11:10
Speaker 3: twenty eighteen. Sandy call who leads innovation at Franklin Templeton,
11:14
Speaker 3: I mean she and I got back into crypto I
11:16
Speaker 3: think twenty thirteen, twenty fourteen, something like that, sitting next
11:19
Speaker 3: to each other at Citygroup. So we are absolutely aligned
11:22
Speaker 3: from a vision perspective.
11:24
Speaker 2: And right now it is a critical moment.
11:27
Speaker 3: I mean, the institutional era of crypto has arrived. The
11:31
Speaker 3: problem is is that clients all over the world, they
11:35
Speaker 3: have a lot of risk right now. They used to
11:37
Speaker 3: have risk if they were in the space and if
11:39
Speaker 3: they were brave enough to be in the space, but
11:42
Speaker 3: now they have risk if they're not. They know they
11:45
Speaker 3: need to have crypto solutions across the board, and so
11:48
Speaker 3: what we're doing is we're bringing our extensive crypto native expertise.
11:52
Speaker 3: I mean, we've done this, we do this twenty four
11:54
Speaker 3: to seven. We also understand how to operate in twenty
11:57
Speaker 3: four to seven markets, which has now become a reality,
12:00
Speaker 3: and we're going to be building all different types of
12:02
Speaker 3: solutions for our global institutional clients to help them navigate
12:06
Speaker 3: the complexity of this crazy world we call crypto and
12:10
Speaker 3: I could not be more excited to partner with this team.
12:13
Speaker 3: It's global reach to solve the problems of our future clients.
12:17
Speaker 1: I'm looking at the coin fund, you know, lineup here,
12:21
Speaker 1: you got to Ether five flow Vita, which is a
12:23
Speaker 1: huge vault play Vita. I mean when you look at this,
12:27
Speaker 1: I start wondering, is this going to be a play
12:31
Speaker 1: on Vita Liido, which essentially is kind of the connecting
12:35
Speaker 1: points there. In terms of packaging this up under the
12:39
Speaker 1: Franklin vault model, what kind of can you share anything
12:43
Speaker 1: about products or anything of that nature that's going to
12:45
Speaker 1: come out of this?
12:47
Speaker 3: Yeah, I think you're going to see a wide array
12:49
Speaker 3: of products, every thing from cash and yield based products
12:53
Speaker 3: to our current liquid strategies we have. We'll have it
12:57
Speaker 3: connected many different flavors and forms, but which you're getting
13:00
Speaker 3: at Veda vaults are super interesting. And you also can't
13:07
Speaker 3: separate this from the agentic economy as well, and all
13:11
Speaker 3: the different capabilities that agents give us. And so do
13:15
Speaker 3: I envision a future world where I'm speaking to a client.
13:19
Speaker 3: A client gives me a whole bunch of data that
13:21
Speaker 3: reflects their investment needs, and I use various technology tools,
13:26
Speaker 3: whether it's AI agents to immediately spin up a customized
13:29
Speaker 3: vault to immediately address their exact investment needs, timelines, cash
13:33
Speaker 3: flows and everything else instantaneously. Yeah, that's the future. That
13:38
Speaker 3: is absolutely the future. So yeah, very familiar to Veta team. Great,
13:42
Speaker 3: great project, and we'll be looking at integrating tools like
13:46
Speaker 3: that in time to again. How do you solve clients
13:49
Speaker 3: problems and how do you leverage these new technologies to
13:51
Speaker 3: deliver better products than have ever been built before.
13:55
Speaker 1: Very interesting because we, of course are big fans of
13:57
Speaker 1: the beta product that I love to watch that one.
14:00
Speaker 1: This is something that surprised me. We looked into what
14:04
Speaker 1: Schwab had done here recently in terms of the recommendations,
14:07
Speaker 1: and I'll zoom in on this a little bit. They're
14:10
Speaker 1: talking in the comparison here is bitcoin and eight in
14:12
Speaker 1: case you guys are on the audio podcast, but the
14:14
Speaker 1: desired risk contribution was around five percent conservative even if
14:18
Speaker 1: you look at the we'll go moderate, it was like
14:20
Speaker 1: one point six on bitcoin versus one point one on ethereum,
14:25
Speaker 1: and if you compare that in relationship to market cap,
14:28
Speaker 1: eth was the bigger jump here. So Schwab is very
14:32
Speaker 1: pro ethereum. What did you think about this in terms
14:35
Speaker 1: of how people were looking at risk contribution right now?
14:39
Speaker 3: So I think more about it in terms of fundamentals.
14:42
Speaker 3: And you know, there's been recent takes saying, oh, you know,
14:47
Speaker 3: these tokens are worthless because there's thousands of them that
14:50
Speaker 3: are created every day, blah blah blah. Mine is that
14:54
Speaker 3: a token is just a rapper. What matters are the
14:58
Speaker 3: fundamentals underneath it. And you can apply that fundamental discipline
15:02
Speaker 3: to anything from the native assets bitcoin, ethereum, Salona, hyperliquid, whatever,
15:08
Speaker 3: to equities to bonds, and so what matters is what's underneath.
15:13
Speaker 3: Bitcoin and ethereum are two very different assets with very
15:17
Speaker 3: different properties, and I think, you know, rather than kind
15:22
Speaker 3: of come up with these, hey, you should have this
15:23
Speaker 3: portfolio for this type of risk tolerance, it's going to
15:27
Speaker 3: be much more bespoke and customized like I spoke about.
15:30
Speaker 3: But like bitcoin is, like you know, is very much
15:33
Speaker 3: a macro asset, there's still a lot of the dominance
15:37
Speaker 3: of bitcoin really drives these crypto markets. The thing about
15:40
Speaker 3: Ethereum that I absolutely love is that it's ten years old.
15:44
Speaker 3: It's the go to destination currently for stable coins. And
15:49
Speaker 3: other real world assets, and that yield like that real
15:53
Speaker 3: yields around three percent is something that is very, very
15:57
Speaker 3: accreative to portfolio. So you know, it all depends I
16:03
Speaker 3: like them both, it depends on your investment rejectives.
16:06
Speaker 1: Well, the staking demand is definitely flying in terms of
16:09
Speaker 1: a theorem. If you look at the just the validator queue,
16:12
Speaker 1: which has been lining up right now, it's like a
16:13
Speaker 1: forty nine day wait right there. In comparison, exits is
16:17
Speaker 1: almost immediate. This of course gives a lot, I think
16:20
Speaker 1: a lot in the way of the potential opportunity that
16:23
Speaker 1: you keep mentioning here in terms of where these markets
16:25
Speaker 1: are heading. So I agree with you. I've got a
16:28
Speaker 1: couple of clips here because I want to look forward
16:30
Speaker 1: into how ethan bitcoin because they're both rising as very
16:35
Speaker 1: dominant assets, at least in the digital asset market space.
16:38
Speaker 1: Here's Justin Drake breaking down where ethereum works with bitcoin.
16:43
Speaker 1: Take a look just a question on the post quantum
16:46
Speaker 1: cryptography here.
16:47
Speaker 2: It seems to be the big theme of this conference.
16:49
Speaker 4: I'm feeling extremely good about the Ethereum's roadmap. What I
16:55
Speaker 4: think will happen is that the whole blocks and industry
16:59
Speaker 4: will copy. Almost no one is tackling the hard problem,
17:02
Speaker 4: which is so called signature aggregation. So one of the
17:06
Speaker 4: strategies that we're taking is to ironically partner with bitcoiners.
17:13
Speaker 4: And the reason here is that if we can pilll
17:14
Speaker 4: the bitcoiners in using the same solution that we have,
17:18
Speaker 4: then we basically will create a de factor standard because
17:21
Speaker 4: the top two blockchains will have adopted it. And turns
17:24
Speaker 4: out that Blockstream is now taking this seriously. We had
17:27
Speaker 4: conversations with them and we have a solution which is
17:31
Speaker 4: extremely bitcoin friendly, where ironically it also provides a scalability
17:37
Speaker 4: increase for them. Basically a six sex improvement in data
17:41
Speaker 4: overhead for the signatures would allow Bitcoin to adopt post
17:45
Speaker 4: quantum signatures without decreasing their throughput and also without increasing
17:51
Speaker 4: the block size, which is socially very difficult for them
17:53
Speaker 4: to do.
17:54
Speaker 1: So crazy to hear you had justin there kind of
17:56
Speaker 1: breaking down quantum resistance implemented via e in the bitcoin.
18:01
Speaker 1: Did you ever think you would hear that being spoken.
18:05
Speaker 2: I think it's very smart.
18:07
Speaker 3: As this institutional era takes hold, investors have to navigate
18:12
Speaker 3: investment committees and for many of them it's the very
18:15
Speaker 3: first time they're trying to convince their traditional shop to
18:19
Speaker 3: asset class, and inevitably the question is going to come up,
18:23
Speaker 3: what about quantum risk? What about quantum risk? Because it
18:28
Speaker 3: compounds the fear of the unknown. They're already a fearful
18:31
Speaker 3: because they don't really understand crypto. They also don't understand quantum.
18:35
Speaker 3: You put it together and it's like, oh, I'm a
18:38
Speaker 3: risk manager, I don't understand this. Can do have solutions?
18:42
Speaker 3: And the good news here is that the Ethereum Foundation,
18:46
Speaker 3: whom I love, is out in front. These guys are
18:49
Speaker 3: smart and by the way, let's remember the asset crypto
18:52
Speaker 3: right it is probably one of the most susceptible to quantum,
18:57
Speaker 3: to making sure they're quantum resistant, and I do believe
19:01
Speaker 3: that it's existential and there's enough awareness now that it's
19:04
Speaker 3: going to get solved. There was some, I don't want
19:07
Speaker 3: to say complacency, but there was some. I think the
19:11
Speaker 3: bitcoin lacked a little bit of focus for a while.
19:14
Speaker 3: Nick Carter highlighted that, and I think the great news
19:17
Speaker 3: is that now that at the forefront will understand that
19:20
Speaker 3: this must be dealt with.
19:22
Speaker 2: Even Google's talking about it.
19:24
Speaker 3: I sleep fine at night thinking about the quantum threat
19:29
Speaker 3: because I know people like you know, like the EF
19:33
Speaker 3: and now bitcoin or galvanised saw, but you have to write,
19:35
Speaker 3: you have to and a lot of the other projects
19:37
Speaker 3: are a little bit more centralized so they can move faster.
19:40
Speaker 3: I don't see this as a risk that's going to
19:42
Speaker 3: really undermine our industry. I think it's going to get sorted.
19:46
Speaker 1: This was a very interesting analysis because he's been on
19:49
Speaker 1: record calling the two thousand and eight financial crisis, and
19:53
Speaker 1: he nailed an issue on bitcoin. I want you to
19:55
Speaker 1: listen to this because this goes back to your risk
19:57
Speaker 1: profile issue that investors are looking at. Let's take a look.
20:00
Speaker 2: Bitcoin is going to zero.
20:02
Speaker 5: Why because ultimately because of its reliance upon energy. But
20:05
Speaker 5: at some point we're going to realize we're using far
20:07
Speaker 5: too much energy on the planet. We've got to cut
20:09
Speaker 5: the energy consumption. And the two is things to cut
20:13
Speaker 5: out to reduce energy consumption. A cryptocurrency is an international
20:17
Speaker 5: travel so a lot of these things about you know,
20:19
Speaker 5: robotics taken over. Do we have the minerals for it?
20:22
Speaker 5: Solar power? Do we have the minerals? The answer is
20:26
Speaker 5: not yes, okay, And if that robustness is destroyed either
20:31
Speaker 5: by military conflicts or by over extending what we put
20:35
Speaker 5: into the bosphere, then we can fall off what's called
20:38
Speaker 5: the Seneca cliff. We can go from an abundant future
20:41
Speaker 5: to a collapse.
20:42
Speaker 2: And what would you say the people at home should
20:44
Speaker 2: be doing to course correct?
20:48
Speaker 1: All right? So his point there, and I think is
20:51
Speaker 1: one that has been brought up many times before, is
20:55
Speaker 1: the whole energy model. And the argument that's being put
20:58
Speaker 1: out is that still an issue you think with major
21:01
Speaker 1: investors who are trying to get you know, access and
21:04
Speaker 1: also exposure. Where bitcoin is right now.
21:07
Speaker 3: I think energy is probably going to be the new
21:10
Speaker 3: stable coin.
21:11
Speaker 2: And just bear with me.
21:12
Speaker 3: It's a little bit out there, but I think it's
21:14
Speaker 3: one hundred percent the case. Look at what bitcoin is,
21:18
Speaker 3: you're essentially wrapping electricity based on proof of work. Now
21:22
Speaker 3: you're seeing minors shifting over to AIDATA centers because there's
21:27
Speaker 3: this demand for energy, which actually drives compute in my mind,
21:32
Speaker 3: the innovation. When humans are confronted with a challenge, they
21:36
Speaker 3: tend to really step up. And so the amount of
21:39
Speaker 3: focus right now that's going into new technologies, whether it's
21:42
Speaker 3: Elon putting solar panels on the moon, throughout space to
21:46
Speaker 3: the nuclear side. You know, I've always been impressed with
21:49
Speaker 3: the ingenuity of humanity, and I think I do think
21:53
Speaker 3: that this is going to get self for pretty well.
21:56
Speaker 3: Now that said, compute and almost it's probably going to
22:01
Speaker 3: be the next stable coin because it's going to be ubiquitous,
22:06
Speaker 3: It's going to be very, very valuable.
22:07
Speaker 2: I think it's going to be a.
22:08
Speaker 3: Very transferable commodity. We haven't really seen it emerge yet,
22:12
Speaker 3: but there's going to be some kind of iteration of
22:14
Speaker 3: wrapped you know, Bitcoin is wrapped energy. Maybe that is
22:17
Speaker 3: going to play more prominent role like we're seeing, but
22:21
Speaker 3: wrapping that energy and compute is going to be I
22:23
Speaker 3: think it's going to turn more into a medium exchange
22:25
Speaker 3: in the future.
22:26
Speaker 1: Well, I think the argument is really you know, if
22:28
Speaker 1: you look at two major assets in the class right now,
22:32
Speaker 1: that would be bitcoin and ethereum. An investor may look
22:36
Speaker 1: at ethereum just simply on the alternative to the issue
22:39
Speaker 1: that Bitcoin is facing. I think that's the question in
22:43
Speaker 1: terms of how to investors look at this, you know,
22:46
Speaker 1: for a long term play. Here, if we are seeing
22:48
Speaker 1: quantum efficiency happening at the eighth level and we've already
22:52
Speaker 1: solved the energy issue at the eighth level, Why would
22:55
Speaker 1: they not just say, okay, I'll just you know, that's
22:57
Speaker 1: that's my play.
22:58
Speaker 3: I mean, that's a great perspective to have, and that's
23:00
Speaker 3: why I'm bullish. Ethereum and many of the other proof
23:03
Speaker 3: of steak layer ones that said it like, bitcoin is
23:09
Speaker 3: still something very special, right, twenty one million tokens that
23:12
Speaker 3: has social consensus around a store value, and the more
23:16
Speaker 3: that social consensus focuses on it as digital gold.
23:21
Speaker 2: By the way, we saw this decoupling recently.
23:23
Speaker 3: Where all these governments are saying I don't trust a dollar,
23:26
Speaker 3: I have to do a couple. I'm going to sell
23:28
Speaker 3: my treasuries and buy gold. I'm going to buy gold.
23:30
Speaker 3: I'm going to buy gold gold. Problem with that is
23:32
Speaker 3: that gold is not easy to buy. And if you
23:35
Speaker 3: buy derivatives, guess what, you're right back into the US
23:38
Speaker 3: system that you're trying to avoid because you're centrally clearing
23:41
Speaker 3: it on probably US regulated systems.
23:43
Speaker 2: So then you have to.
23:44
Speaker 3: Buy physical gold, which is really hard, very difficult to transport, store,
23:48
Speaker 3: et cetera.
23:49
Speaker 2: And so why do these.
23:51
Speaker 3: Guys decide to go into gold because they're old, they
23:55
Speaker 3: don't really understand bitcoin like the up and coming generation does,
23:59
Speaker 3: and so I think you're going to see that Bitcoin
24:01
Speaker 3: start catching up to gold as time goes on, because
24:05
Speaker 3: it is a truer Digital scarcity is something that that
24:10
Speaker 3: could drive value with the appropriate social consensus. Bitcoin has
24:13
Speaker 3: that social consensus. It is a store of value, and
24:16
Speaker 3: I think you're going to see more of it as
24:19
Speaker 3: this generation that's more comfortable with it grows up.
24:22
Speaker 1: We're going to go into a lightning round with you
24:25
Speaker 1: just to kind of get your quick answers on some
24:27
Speaker 1: of these things. Iranian war right now, mission accomplished or
24:30
Speaker 1: a lot of work to be done yet?
24:32
Speaker 3: Oh man, a lot of work to be done. A
24:34
Speaker 3: lot of work to be done.
24:36
Speaker 1: As far as the conspiracy theory, bitcoiners push for the
24:39
Speaker 1: straight of horror moves to use bitcoin. Do you think
24:42
Speaker 1: that's believable? No, Okay, crypto already bottomed up from here.
24:46
Speaker 3: Yeah, but we're going to see some short term volatility,
24:49
Speaker 3: but all right, it's at the bottom.
24:51
Speaker 1: Is essentially is the overall Franklin Templeton secretly supporting banning
24:56
Speaker 1: stable coin yields. Got You've got a lot of money
24:59
Speaker 1: markets over there.
25:00
Speaker 3: Well, look, I think that a better way to frame
25:03
Speaker 3: this is why can't you use money markets for payments?
25:06
Speaker 3: And if you looked at the details of our deal,
25:10
Speaker 3: you saw that there was new use, right, So these
25:12
Speaker 3: things are blending together.
25:14
Speaker 2: I think it's false. I think money markets can compete
25:16
Speaker 2: just fine.
25:17
Speaker 1: The biggest hurdle for you guys on vault adoption. Do
25:19
Speaker 1: you think it would be competitor rates or the KYC issue?
25:22
Speaker 2: Competitor rates? Not sure what that means.
25:27
Speaker 1: Vault offerings.
25:29
Speaker 3: How could someone have better vault offering than for Franklin
25:32
Speaker 3: Templeton in the future.
25:34
Speaker 2: I'm just kidding. So maybe competitor rates is out there.
25:40
Speaker 3: I'm just kidding. So let's go to competitor rates then.
25:43
Speaker 3: Yet Yeah, look, KYC and UI friction.
25:45
Speaker 2: Shouldn't be a deal. It shouldn't be an issue. It
25:47
Speaker 2: should be very seamless.
25:48
Speaker 1: Fixing quantum isn't going to convince the boomers. You think
25:52
Speaker 1: it might though, from what you said earlier, I think
25:54
Speaker 1: so Circles should have frozen the drift hack USDC.
25:58
Speaker 2: What do you agreed absolutely, I should have. Yes, I
26:01
Speaker 2: think you're going to see them.
26:03
Speaker 3: What do you mean because Circle is a centralized company,
26:06
Speaker 3: typically of due process, we have to go through due
26:08
Speaker 3: process before it ceased as we go into the rulemaking,
26:12
Speaker 3: and I think we saw one of the agencies come
26:14
Speaker 3: out today and try to put some responsibility on these
26:17
Speaker 3: folks to move fast when these issues are identified.
26:20
Speaker 2: But they need to be given the.
26:23
Speaker 3: Freedom to move fast in certain ways in cases of
26:26
Speaker 3: issues like this. Now the problem is is that, I mean,
26:29
Speaker 3: they can always unfreeze things, but these are centralized companies
26:34
Speaker 3: that do have to think.
26:35
Speaker 1: Interesting institutions want crypto risk exposure, they just don't know
26:40
Speaker 1: where to start. Do you think that is still true?
26:43
Speaker 2: Violent agreement violent agreement.
26:45
Speaker 1: Investment manager firms now are going to go hunting for
26:48
Speaker 1: acquisitions to prepare for vault season like Franklin did with
26:52
Speaker 1: you guys.
26:53
Speaker 3: Sure, Yeah, I've got to see a lot more m
26:55
Speaker 3: and a one hundred percent builder by buying is a
26:58
Speaker 3: lot much faster time to market.
27:00
Speaker 1: Everyone is still fading the upcoming robin hood chain. This
27:03
Speaker 1: is we think this is a potential here. Do you
27:07
Speaker 1: do you think people are overlooking this one one percent?
27:09
Speaker 3: Yeah, I think there's going to be incredible potential. It's
27:12
Speaker 3: not going to be the same thing as ethereum. The
27:14
Speaker 3: theory is focusing on crops. Which is censorship resistance. This
27:18
Speaker 3: is gonna be much different sent I think they're going
27:20
Speaker 3: to be successful. It's all about distribution and they have it.
27:23
Speaker 1: Last question here, which vault would you rather be locked
27:25
Speaker 1: in for the rest of twenty twenty six. You have
27:27
Speaker 1: to hold it till the end of the year. A
27:29
Speaker 1: USDC five to eight ap Y or AN eight three
27:33
Speaker 1: three five APY.
27:35
Speaker 2: I want Eth paying Caesar. You know what Caesar is?
27:39
Speaker 1: No, tell me copp is.
27:40
Speaker 2: At ether sticking rate. It's the It's essentially the restrict
27:43
Speaker 2: rate of Ethereum.
27:44
Speaker 1: I'm with you on this one. I think eight would
27:46
Speaker 1: be the play for sure. Oh yeah, yeah, Chris has
27:49
Speaker 1: been great having you on on the show today. Thank
27:51
Speaker 1: you so much. We're gonna be watching what you guys
27:53
Speaker 1: come up with over at Franklin Templeton. So thanks for
27:55
Speaker 1: coming in.
27:56
Speaker 2: Thank you, Paul, really appreciate you having me, sir.
28:05
Speaker 1: If you like this video, hit like and subscribe, drop
28:07
Speaker 1: a comment down below, and also join our free private
28:10
Speaker 1: member group. The links in the description