Latest / The Paul Barron Crypto Show / Coinbase Loans Skyrocketing🚀Q&A INTERVIEW

Transcript

Coinbase Loans Skyrocketing🚀Q&A INTERVIEW · The Paul Barron Crypto Show

• 0:06
  Speaker 1: Let's get into crypto adoption today. And one of the
• 0:08
  Speaker 1: topics we always are asked is what exchange should you
• 0:11
  Speaker 1: look at? And that is what we're going to break
• 0:13
  Speaker 1: down today with Coinbase. It's going to be a good
• 0:15
  Speaker 1: one so many small barrel will come back in the
• 0:17
  Speaker 1: tech path.
• 0:17
  Speaker 2: Let's get started.
• 0:18
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• 0:48
  Speaker 2: All right, So let's get into it today.
• 0:49
  Speaker 1: I wanted to bring on someone from Coinbase that could
• 0:52
  Speaker 1: really talk about product a little bit more. And I
• 0:55
  Speaker 1: think this is something that we have a lot of
• 0:57
  Speaker 1: questions about as especially as a lot of new people
• 1:00
  Speaker 1: are coming into crypto, so I wanted to introduce and
• 1:03
  Speaker 1: bring in our guest today and that is Max Brandsburg,
• 1:06
  Speaker 1: who is the head of consumer and business product over
• 1:09
  Speaker 1: at coinba.
• 1:10
  Speaker 2: It's great to have you.
• 1:11
  Speaker 3: Thanks for having me, Paul.
• 1:12
  Speaker 1: Okay, so Max, let's get into a lot of details
• 1:16
  Speaker 1: around what's going on with coinbase. You guys have just
• 1:19
  Speaker 1: a slew of new products coming out. One of the
• 1:21
  Speaker 1: things that is interesting to me is what's going on
• 1:24
  Speaker 1: with bitcoin back loans.
• 1:26
  Speaker 3: Now.
• 1:27
  Speaker 1: Morpo partnered up with you guys here recently, and I'll
• 1:30
  Speaker 1: show you some data on this. This is pretty astounding.
• 1:33
  Speaker 1: But your statement right here, which I think is perfect.
• 1:36
  Speaker 1: These are the kind of things that people are looking
• 1:38
  Speaker 1: at and probably don't even know that they can do
• 1:40
  Speaker 1: with their bitcoin in terms of getting loans against that
• 1:43
  Speaker 1: for various reasons. How has been the acceptance so far
• 1:48
  Speaker 1: from consumers?
• 1:49
  Speaker 2: What's been the feedback?
• 1:51
  Speaker 3: Yeah, it's been fantastic.
• 1:52
  Speaker 4: We launched bitcoin back loans just a few months ago
• 1:55
  Speaker 4: and you can see some of the metrics. They're all
• 1:58
  Speaker 4: public because it's an on chain product, it's powered by
• 2:01
  Speaker 4: Morpho on base. So we've seen more than four hundred
• 2:04
  Speaker 4: million dollars of loans originated now through Morpho. The product,
• 2:09
  Speaker 4: just as as a quick recap, enables you to borrow
• 2:12
  Speaker 4: up to a million dollars of USDC against your bitcoin
• 2:16
  Speaker 4: directly in the main coin Base app. It's a one
• 2:19
  Speaker 4: tap loan. You don't have to do some kind of
• 2:21
  Speaker 4: big application approval process, delayed settlement. It's just there right away,
• 2:26
  Speaker 4: and we've seen tremendous uptakes so far. You can you
• 2:30
  Speaker 4: can see the metrics here, but folks are using their
• 2:32
  Speaker 4: loans for everything from you know, paying a down payment
• 2:37
  Speaker 4: on a mortgage, to helping to buy a car, do
• 2:40
  Speaker 4: home renovations, every day, spending whatever it is that otherwise
• 2:45
  Speaker 4: you might have had to sell your bitcoin in order
• 2:47
  Speaker 4: to finance, and now.
• 2:49
  Speaker 3: You don't need to.
• 2:50
  Speaker 4: So it's been it's been a pretty magical product for
• 2:54
  Speaker 4: our customers so far.
• 2:55
  Speaker 1: You know, I had a chance to we we always
• 2:57
  Speaker 1: try to test stuff here in the studio, and I
• 3:00
  Speaker 1: tested the Morpho product and I was impressed with the
• 3:02
  Speaker 1: way that it's laid out in the app, very easy
• 3:05
  Speaker 1: to your point, and I think that is something that
• 3:08
  Speaker 1: a lot of people are looking for. I think they'll
• 3:10
  Speaker 1: be surprised at how simple this is, especially when you
• 3:14
  Speaker 1: normally have to go through so much paperwork and a
• 3:17
  Speaker 1: lot of detail and being able to do a loan
• 3:19
  Speaker 1: even with some companies that are doing bitcoin based loans
• 3:22
  Speaker 1: right now. So good to see how you guys are
• 3:25
  Speaker 1: going now. One thing though that I noticed within the
• 3:28
  Speaker 1: app whenever you do take a coin Base loan against
• 3:31
  Speaker 1: your bitcoin, or I should say a loon against your
• 3:33
  Speaker 1: bitcoin on Coinbase, is that it comes to you in USDC.
• 3:37
  Speaker 1: But the statement is that you can't use the USDC.
• 3:41
  Speaker 2: For purchase of crypto, But people could easily.
• 3:44
  Speaker 1: Just move that USDC off and then end up buying
• 3:47
  Speaker 1: crypto maybe somewhere else. Why is that a requirement right now?
• 3:52
  Speaker 4: The intent of the product is really to be a
• 3:55
  Speaker 4: bitcoin back loan for whatever you may need it for
• 3:58
  Speaker 4: for everyday usage. It's not meant to be a trading
• 4:02
  Speaker 4: product specifically, and so the USDC is very flexible. You
• 4:06
  Speaker 4: can hold that USDC and earn up to four and
• 4:09
  Speaker 4: a half percent yield on it within the Coinbase app,
• 4:12
  Speaker 4: you can withdraw it and use it in your everyday life.
• 4:14
  Speaker 4: So it's really meant to be a flexible portfolio backed
• 4:18
  Speaker 4: line of credit. More so, than a not a trading
• 4:22
  Speaker 4: product itself.
• 4:23
  Speaker 1: Yeah, a way to leverage into crypto a little bit further. No, well,
• 4:27
  Speaker 1: I think you know, sometimes I think people would look
• 4:29
  Speaker 1: at that and say that's a good responsible thing, because
• 4:31
  Speaker 1: some people may not even realize they could do that.
• 4:34
  Speaker 1: But I'm telling you, I think that a lot of
• 4:36
  Speaker 1: people are doing that. Is that they're they're getting it
• 4:39
  Speaker 1: in the USDC and then flipping it and buying either
• 4:42
  Speaker 1: more bitcoin or a theoryum or whatever it might be.
• 4:45
  Speaker 1: For sure, let's get into when you look at the
• 4:48
  Speaker 1: Coinbase one card this. First of all, when you guys
• 4:52
  Speaker 1: announced this, I was like, Okay, finally we've got a
• 4:54
  Speaker 1: new product that is going to be amazing to at
• 4:57
  Speaker 1: least for.
• 4:58
  Speaker 2: The crypto community.
• 4:59
  Speaker 1: But all so maybe in the sense of getting new
• 5:01
  Speaker 1: people into coinbase and just in general into crypto. You
• 5:06
  Speaker 1: guys are offering this right now up to four percent
• 5:09
  Speaker 1: on bitcoin on every purchase. How does this work in
• 5:14
  Speaker 1: the scale of the process, Because when I went through
• 5:16
  Speaker 1: the details of this, it goes down into the four
• 5:21
  Speaker 1: percent is based on the assets. The more the assets
• 5:24
  Speaker 1: that you hold. Is there some sort of table out
• 5:27
  Speaker 1: there that gives you a rating of if you own
• 5:30
  Speaker 1: this amount in assets, this is what I get back
• 5:33
  Speaker 1: on my bitcoin?
• 5:34
  Speaker 2: Yeah, percentage.
• 5:35
  Speaker 4: So we just announced this card is super exciting card.
• 5:39
  Speaker 4: I think, first of it's kind that we'll offer up
• 5:41
  Speaker 4: to four percent back on every purchase in every category.
• 5:45
  Speaker 4: Normally credit card holders are trying to search my groceries,
• 5:48
  Speaker 4: is it my dining, my travel, and then you know,
• 5:51
  Speaker 4: best case scenario, you get some points back that maybe
• 5:54
  Speaker 4: you can use at some point, but they probably depreciate
• 5:57
  Speaker 4: over time even worse than Fiat.
• 5:59
  Speaker 3: Yes, and a lot of people have come to.
• 6:02
  Speaker 4: Just be very skeptical I think of the card programs
• 6:05
  Speaker 4: and what they're actually getting back for it. This is
• 6:07
  Speaker 4: really a first of its kind product that you don't
• 6:09
  Speaker 4: have to be skeptical. You're going to get up to
• 6:11
  Speaker 4: four percent pit coinback on every single purchase. So very
• 6:15
  Speaker 4: exciting card for us. In terms of the thresholds and
• 6:18
  Speaker 4: the assets on platform. More of that detail will be
• 6:21
  Speaker 4: released as we get closer to the launch itself, getting
• 6:25
  Speaker 4: to those highest The highest four percent back will be
• 6:28
  Speaker 4: based on the assets you have on platform, and this
• 6:31
  Speaker 4: will be a very accessible product and something that we
• 6:33
  Speaker 4: hope millions of people will adopt.
• 6:35
  Speaker 1: So is there any I know with your competitor out there,
• 6:40
  Speaker 1: you know, when they do launch.
• 6:41
  Speaker 2: Their card, they have you.
• 6:43
  Speaker 1: There's a membership program that you get, you know, kind
• 6:46
  Speaker 1: of at least in the wait list, and I know
• 6:49
  Speaker 1: with Coinbase one that you also are automatically invited within it.
• 6:53
  Speaker 1: So is there anything that our viewers today would need
• 6:57
  Speaker 1: to do to get on the list, primarily right now
• 7:00
  Speaker 1: to be able to get access to the card later
• 7:02
  Speaker 1: as it.
• 7:02
  Speaker 3: Launches, no barriers to get on the list.
• 7:04
  Speaker 4: I mean, coinbase dot com slash credit card is where
• 7:07
  Speaker 4: you can sign up for the wait list, so you
• 7:09
  Speaker 4: should absolutely do that.
• 7:10
  Speaker 3: Now.
• 7:11
  Speaker 4: The card will be available to all Coinbase one members
• 7:15
  Speaker 4: and that includes a brand new membership tier that we
• 7:18
  Speaker 4: just announced that's Coinbase one Basic and it's available four
• 7:22
  Speaker 4: dollars ninety nine cents a month or forty nine to
• 7:25
  Speaker 4: ninety nine a year.
• 7:25
  Speaker 3: So okay, just nine ninety nine a year.
• 7:28
  Speaker 4: You get access to not only the card, but also
• 7:31
  Speaker 4: all the Coinbase one benefits of zero feed, trading, account protection,
• 7:35
  Speaker 4: all kinds of benefits, boosted rewards under USDC and staking
• 7:39
  Speaker 4: and so at that very accessible membership tier, you now
• 7:42
  Speaker 4: have access to this really extensive benefits.
• 7:45
  Speaker 1: How what's the difference between this basic and the regular
• 7:49
  Speaker 1: coinbase one?
• 7:50
  Speaker 2: What am I losing?
• 7:51
  Speaker 4: You'll have different magnitudes and benefits at the different tier levels,
• 7:55
  Speaker 4: So there'll be a basic tier, a preferred tier, and
• 8:00
  Speaker 4: of those tiers will get different.
• 8:01
  Speaker 3: Levels of boosting on your awards.
• 8:03
  Speaker 4: For example, the card will be available at all three tiers.
• 8:09
  Speaker 1: Uh.
• 8:09
  Speaker 4: And that's something that we think again will serve users
• 8:12
  Speaker 4: of crypto really effectively. Of course, if you're in crypto already,
• 8:15
  Speaker 4: it's just a great no breaking our card, but also
• 8:18
  Speaker 4: starts to extend beyond that population to people who maybe
• 8:21
  Speaker 4: weren't in crypto before. And if you start if you're
• 8:23
  Speaker 4: spending on a card normally, you can start as well
• 8:26
  Speaker 4: doing that bill built in portfolio. So it's a pretty
• 8:29
  Speaker 4: cool way I think to hopefully bring in a new
• 8:31
  Speaker 4: wave of users as well.
• 8:33
  Speaker 1: I'm very excited about these kinds of products, especially coming
• 8:35
  Speaker 1: out of the exchanges, and I think we're going to
• 8:38
  Speaker 1: see a lot more people going into at least getting
• 8:42
  Speaker 1: curious about what's happening with crypto, maybe through the.
• 8:45
  Speaker 2: Credit card usage, so that it's a good tool.
• 8:47
  Speaker 1: I think we'll get you some some movement coming in
• 8:51
  Speaker 1: fall so I'm very excited about that. This of course
• 8:53
  Speaker 1: was a partnership I think with Amex, which is going
• 8:56
  Speaker 1: to be another big I think that's a big win
• 8:58
  Speaker 1: because most all the cards that we've seen so far
• 9:01
  Speaker 1: have been Visa MasterCard base, so that in itself will
• 9:05
  Speaker 1: be unique as well.
• 9:06
  Speaker 2: So I'm kind of intrigued with that.
• 9:09
  Speaker 1: Let's get into the idea of where coinbase centers around
• 9:15
  Speaker 1: your marketing, and this is one that I'm always kind
• 9:17
  Speaker 1: of curious around. This was a tweet by David Hoffman.
• 9:20
  Speaker 1: This guy's a big eth guy. And uh, you know,
• 9:25
  Speaker 1: when you look at coinbases marketing, a lot of times
• 9:27
  Speaker 1: Bitcoin is at the front of everything, and it's rare
• 9:30
  Speaker 1: that we even see that. You know, you can also
• 9:33
  Speaker 1: get into ethereum and you know many other assets out there.
• 9:36
  Speaker 2: What do you think it's.
• 9:37
  Speaker 1: Going to take to get something like an eight on
• 9:40
  Speaker 1: the front line of bigcoin of coinbases marketing.
• 9:44
  Speaker 4: You know, I don't think of coinbases marketing is as
• 9:47
  Speaker 4: intentionally prioritizing on.
• 9:49
  Speaker 2: That's what Brian says all the time.
• 9:52
  Speaker 4: Now, you know, we really are, We're getting an agnostic platform.
• 9:55
  Speaker 4: I mean, our job is to enable everyone to get
• 9:57
  Speaker 4: into crypto to facilitate the development of the of the
• 10:00
  Speaker 4: ecosystem overall. I mean Base, our layer two network is
• 10:03
  Speaker 4: an Ethereum layer two, so we are heavily invested across
• 10:08
  Speaker 4: you know, the full, the full ecosystem. I think every
• 10:12
  Speaker 4: time you hear us a base, you should hear Ethereum
• 10:15
  Speaker 4: in that is because the ability we are both directly
• 10:20
  Speaker 4: contributing to the development of the Ethereum ecosystem and really
• 10:24
  Speaker 4: believe very deeply in the potential there. So I think
• 10:27
  Speaker 4: I think when you see coin base, you should see Bitcoin,
• 10:30
  Speaker 4: you should see Ethereum, you should see the whole, the
• 10:32
  Speaker 4: whole ecosystem. In that we're you know, very much driving
• 10:36
  Speaker 4: growth of the overall ecosystem and wherever we can create value.
• 10:39
  Speaker 4: I mean, even this product Bitcoin back loans, as we
• 10:41
  Speaker 4: talked about, that's built on Base powered by Ethereum, and
• 10:44
  Speaker 4: this is where a lot of the potential or or
• 10:47
  Speaker 4: the dex trading announcement which maybe we'll talk about, We're
• 10:50
  Speaker 4: going to enable dex trading from dex is on Base
• 10:53
  Speaker 4: powered by Ethereum. So the whole, the whole opportunity to
• 10:58
  Speaker 4: enable on chain finance services to mass market consumers is
• 11:03
  Speaker 4: really powered by ethereum and smart contract chains that didn't
• 11:08
  Speaker 4: exist you know, seven eight years ago when when Coinbase
• 11:13
  Speaker 4: was just getting started as a bitcoin exchange initially. So
• 11:16
  Speaker 4: we're really leaning into that and building out the next
• 11:18
  Speaker 4: set of financial services on top of that technology.
• 11:22
  Speaker 1: So Morpho great partnership on the Bitcoin loans. So do
• 11:25
  Speaker 1: you see maybe ethereum based loans coming and maybe other
• 11:29
  Speaker 1: assets coming on to this program.
• 11:32
  Speaker 4: Yeah, I think we've just seen this tremendous demand from
• 11:34
  Speaker 4: our customers to borrow against the assets they have on platform.
• 11:37
  Speaker 4: And if you think about Coinbase overall, I think, you know,
• 11:40
  Speaker 4: in the early days, it was the safest and most
• 11:42
  Speaker 4: trusted place to store your assets. What we're doing increasingly
• 11:46
  Speaker 4: is also making it the best place to use and
• 11:48
  Speaker 4: get value out of your assets. And being able to
• 11:51
  Speaker 4: borrow against them is a huge part of that. Being
• 11:53
  Speaker 4: able to stake them is a big part of that.
• 11:55
  Speaker 4: So we'll continue to add those types of features for borrowing.
• 11:59
  Speaker 3: The ability to borrow.
• 12:00
  Speaker 4: Against the next set of assets I think will be
• 12:02
  Speaker 4: pretty powerful for you know, bitcoin. We built a whole
• 12:07
  Speaker 4: stack of technology that enabled us to offer this product.
• 12:11
  Speaker 4: That was Base, that was cbbtc, which is the wrapped
• 12:14
  Speaker 4: bitcoin that is then actually utilized on base in morpho,
• 12:19
  Speaker 4: and so we've got to build some of the technology
• 12:21
  Speaker 4: pieces to make this possible. But I think there's there's
• 12:24
  Speaker 4: very strong demand to borrow against Eth, to borrow against Solana,
• 12:28
  Speaker 4: to borrow against XRP.
• 12:30
  Speaker 3: The next set of assets that folks hold on coinbase.
• 12:33
  Speaker 1: Well, I think when you look at crypto investors in general,
• 12:36
  Speaker 1: most of them are very diversified. They may have real
• 12:39
  Speaker 1: estate businesses, et cetera. They're very accustomed to taking loans
• 12:43
  Speaker 1: out against assets because that's you know, that's the way
• 12:45
  Speaker 1: wealth building is done. So I'm glad to see that
• 12:48
  Speaker 1: you guys are going in that direction, and I love
• 12:50
  Speaker 1: the idea of more more assets.
• 12:52
  Speaker 2: To where you'll be able to do that with.
• 12:53
  Speaker 4: So you know what's interesting, Paul, there's a there's a
• 12:55
  Speaker 4: segment of the population that's very used to that and
• 12:58
  Speaker 4: this is a very natural product for those folks, and
• 13:00
  Speaker 4: you know, for them it's a sort of Aha, finally
• 13:03
  Speaker 4: we can we can take it.
• 13:05
  Speaker 3: Alone against our bitcoin.
• 13:06
  Speaker 4: But there's a segment of the population also that doesn't
• 13:09
  Speaker 4: have access to those kinds of sophisticated financial products. They're
• 13:12
  Speaker 4: not they don't have a private wealth manager at a
• 13:15
  Speaker 4: big bank or something like that, and if you don't
• 13:18
  Speaker 4: have access to that, and really your financial life is
• 13:21
  Speaker 4: more on chain, more crypto based. This is a really
• 13:24
  Speaker 4: powerful wake up also to see the opportunity of what
• 13:27
  Speaker 4: this product can offer.
• 13:28
  Speaker 3: And so we see both of these segments.
• 13:30
  Speaker 4: Actually they're both both I think driving strong demand for
• 13:34
  Speaker 4: the product, but it is novel and I think for
• 13:37
  Speaker 4: a lot of people, it's also showing the power of
• 13:40
  Speaker 4: crypto to democratize a lot of those financial services that
• 13:43
  Speaker 4: were otherwise only available to a select set of people.
• 13:47
  Speaker 4: So and that's uniquely enabled by on chain, right, we
• 13:50
  Speaker 4: couldn't do it if it was a centralized, purely centralized
• 13:53
  Speaker 4: financing book. That's the reason those big banks can only
• 13:56
  Speaker 4: offer it to a select set of customers. But because
• 13:59
  Speaker 4: it's on chain and it's open, it's global, it's permissionless,
• 14:02
  Speaker 4: we can offer it to everyone. And that's I think
• 14:04
  Speaker 4: really the power of these on cham financial services.
• 14:06
  Speaker 1: Well, I think you hit on the point that is
• 14:09
  Speaker 1: very important, and that is it really does democratize the
• 14:12
  Speaker 1: opportunity I think for when you look at just crypto
• 14:15
  Speaker 1: based back loans, that in itself is going to be
• 14:18
  Speaker 1: pretty intensive, especially as we get the younger investors coming in,
• 14:21
  Speaker 1: because there's a lot of investors under the age of
• 14:23
  Speaker 1: thirty thirty five that are just now experiencing to that
• 14:26
  Speaker 1: point that you made.
• 14:28
  Speaker 2: What about when you.
• 14:29
  Speaker 1: Look at the growth of where coinbase is getting a
• 14:33
  Speaker 1: lot of their new customers. Is this coming from you know,
• 14:37
  Speaker 1: the traditional investors that are growing on Robinhood and Fidelity
• 14:41
  Speaker 1: and you know some of these other platforms out there,
• 14:43
  Speaker 1: or are you finding new kinds of customers that are
• 14:46
  Speaker 1: coming into crypto for the first time. I mean, the
• 14:49
  Speaker 1: stock is skyrocketing. We've seen you know, Circle going public,
• 14:54
  Speaker 1: and now you've got growth coming into coinbase in a
• 14:57
  Speaker 1: time where now we have regulatory alignment or it appears
• 15:00
  Speaker 1: that we're going to have it. Where do you think
• 15:02
  Speaker 1: all of that growth is going to be coming from
• 15:04
  Speaker 1: in the future.
• 15:06
  Speaker 3: Yeah, we we see it from all over the place.
• 15:08
  Speaker 4: I mean, it's a it's a very special time I
• 15:11
  Speaker 4: think across the ecosystem, but among the among the retail,
• 15:15
  Speaker 4: user based or individuals, I would say there's probably three
• 15:20
  Speaker 4: major segments to to think about there. I think there's
• 15:23
  Speaker 4: the kind of existing investors as you said that maybe
• 15:26
  Speaker 4: weren't sure about crypto for some time, there wasn't regulatory clarity,
• 15:31
  Speaker 4: but they're they're ready now and they're coming in in
• 15:33
  Speaker 4: droves in really meaningful ways. There's there's another segment, which
• 15:38
  Speaker 4: is a lot of our users are investing in crypto first.
• 15:43
  Speaker 4: They're not equities investors or other asset class investors that
• 15:46
  Speaker 4: are then getting into crypto. They're starting with crypto. They
• 15:49
  Speaker 4: trust crypto more than they trust other you know, traditional
• 15:53
  Speaker 4: asset classes, corporate investments, that type of thing. And so
• 15:57
  Speaker 4: there's a really strong wave of the younger population, especially
• 16:01
  Speaker 4: that trust the decentralized world, that trusts on chain, and
• 16:05
  Speaker 4: that wants to be in crypto, and so I think
• 16:07
  Speaker 4: for them, their portfolio is going to expand from crypto
• 16:10
  Speaker 4: rather than from other things into crypto. And then there's
• 16:13
  Speaker 4: a third segment, which is the sort of global investor
• 16:17
  Speaker 4: based and thinking really beyond the US. And so there's
• 16:20
  Speaker 4: just tremendous growth potential in other countries in Europe and
• 16:25
  Speaker 4: Asia and South America, and these folks are both looking
• 16:28
  Speaker 4: at crypto as an investment class but also as a
• 16:32
  Speaker 4: currency hedge and in a lot of those markets where
• 16:35
  Speaker 4: there's runaway inflation. Getting access to bitcoin, for example, as
• 16:40
  Speaker 4: a hedge, or even US dollar backstable coins as a
• 16:43
  Speaker 4: hedge against local currency inflation has been really powerful. So
• 16:46
  Speaker 4: those are a few of the segments. And then you know,
• 16:48
  Speaker 4: one other that I'll just mention is businesses. And with
• 16:53
  Speaker 4: increased regulatory clarity, we see businesses all the top Fortune
• 16:57
  Speaker 4: five hundred businesses that are coming and knocking our door
• 17:00
  Speaker 4: and saying, how can we incorporate crypto into our business,
• 17:04
  Speaker 4: whether it's payments or treasury management. The opportunities to help
• 17:10
  Speaker 4: them build out their business are just dramatic.
• 17:13
  Speaker 3: And you know, over the years.
• 17:14
  Speaker 4: I've had these conversations with all of those Fortune five
• 17:17
  Speaker 4: hundred companies, and for a long time it was, hey,
• 17:20
  Speaker 4: I want to do this. Smart people in those organizations
• 17:23
  Speaker 4: all saw what was happening in crypto. They said, I
• 17:25
  Speaker 4: want to be able to do this. I see the
• 17:26
  Speaker 4: cost it can take out of my business. I see
• 17:29
  Speaker 4: the benefits it can offer to customers. But there's not
• 17:32
  Speaker 4: regulatory clarity yet. Yeah, and now that there is, those
• 17:37
  Speaker 4: same folks are coming back and saying, okay, we have
• 17:39
  Speaker 4: a green light. Now let's go and actually disrupt ourselves.
• 17:44
  Speaker 4: Let's incorporate stable coins for payments, Let's incorporate treasury management
• 17:48
  Speaker 4: across bitcoin and other assets. And so that's another new
• 17:53
  Speaker 4: demographic that is coming in very aggressively into the space.
• 17:56
  Speaker 1: Now, it's interesting you say that we have a consulting
• 17:59
  Speaker 1: group that that we coach a lot of individual businesses
• 18:03
  Speaker 1: in different sectors, primarily the retail sector on you know,
• 18:06
  Speaker 1: how to integrate crypto products and the uptick since really
• 18:10
  Speaker 1: the last sixty days in lieu of I think a
• 18:13
  Speaker 1: lot of people looking at what's going to happen with
• 18:15
  Speaker 1: stable coins, and now we have the Genius Act going through.
• 18:18
  Speaker 1: It's very intriguing that B to B may be one
• 18:21
  Speaker 1: of the big boom areas in the future. So we'll
• 18:25
  Speaker 1: watch that one. The other one that I want to
• 18:27
  Speaker 1: hit on, of course, is what you guys announced with
• 18:29
  Speaker 1: dex trading, and obviously the universe did get a lot
• 18:33
  Speaker 1: bigger now with dex trading, which is coming.
• 18:35
  Speaker 2: And when you look at.
• 18:36
  Speaker 1: The potential of where dex trading can go and what
• 18:40
  Speaker 1: it's going to look like, this is going to open
• 18:43
  Speaker 1: up a just a treasure show of opportunity. How are
• 18:46
  Speaker 1: you guys going to manage you know, like right Now,
• 18:49
  Speaker 1: if someone tries to list on coinbase, you know, they
• 18:51
  Speaker 1: go through an extremely vetted listing process of getting a
• 18:55
  Speaker 1: token onto Coinbase. But in DEXes, there's so many, there's
• 19:00
  Speaker 1: tens of thousands of these things out there. How will
• 19:02
  Speaker 1: you guys manage or how will you, I guess warn
• 19:05
  Speaker 1: us of a lot of those nefarious ones that end
• 19:08
  Speaker 1: up on these decks. Is anything that you guys are
• 19:10
  Speaker 1: planning around that?
• 19:12
  Speaker 3: Yeah, so we are.
• 19:13
  Speaker 4: This feature is going to flip the concept of listings
• 19:16
  Speaker 4: on its head, where historically centralized exchanges had to selectively
• 19:21
  Speaker 4: choose which assets they want to list, go through a
• 19:23
  Speaker 4: whole process. If you were lucky enough you could get
• 19:26
  Speaker 4: over that hump and get listed on an exchange. We're
• 19:29
  Speaker 4: going to flip that where every asset is available by default.
• 19:33
  Speaker 4: You're just if you're an asset, if you're on chain,
• 19:35
  Speaker 4: you will be available in the Coinbase app. And it's
• 19:39
  Speaker 4: a little bit like going from this sort of centralized
• 19:42
  Speaker 4: Internet portals like Yahoo or AOL back in the day
• 19:46
  Speaker 4: to a Google Search where you know, prior to Google Search,
• 19:50
  Speaker 4: you had to be listed. Someone was manually curating some
• 19:53
  Speaker 4: list of articles or websites that you could get to
• 19:56
  Speaker 4: and then suddenly, when Google Search was introduced, every single
• 19:59
  Speaker 4: web page on the Internet was available and that was
• 20:02
  Speaker 4: a total paradigm shift. And the way that it works
• 20:06
  Speaker 4: is you need to provide the right sort of ranking, quality, discoverability,
• 20:12
  Speaker 4: all the capabilities around that to make it safe and
• 20:15
  Speaker 4: trusted and usable for your users. And so we'll go
• 20:19
  Speaker 4: through a similar process where when we offer access to
• 20:22
  Speaker 4: everything that's on chain, we're also going to bring that
• 20:25
  Speaker 4: data and insights to bear so that customers know exactly
• 20:29
  Speaker 4: what are those assets, what are they getting into, And
• 20:32
  Speaker 4: we'll have a lot of transparency on you know, what's
• 20:36
  Speaker 4: the concentration of top ten token holders for example, so
• 20:39
  Speaker 4: that you know, hey.
• 20:40
  Speaker 3: Is this a safe and trusted asset is it not?
• 20:44
  Speaker 4: But we really want to empower our users to make
• 20:46
  Speaker 4: that decision instead of gatekeeping to a centralized exchange only
• 20:51
  Speaker 4: so it'll be as seamless and easy to use as
• 20:55
  Speaker 4: trading on a centralized exchange. But with the broad access
• 20:59
  Speaker 4: and availability of decentralized exchanges.
• 21:02
  Speaker 1: Well, I think this will be a welcome thing to
• 21:04
  Speaker 1: the industry because right now, if you look at some
• 21:07
  Speaker 1: projects on something like a coin market cap, you see
• 21:10
  Speaker 1: a lot of volume in there that in most cases
• 21:13
  Speaker 1: is not real. I mean it for someone who's researching
• 21:16
  Speaker 1: a token often can get sucked into one of these
• 21:20
  Speaker 1: projects that are not very good. So I think this
• 21:23
  Speaker 1: is one of those situations where you guys might have
• 21:26
  Speaker 1: maybe a solution for this going forward. So I'm very
• 21:28
  Speaker 1: excited about that. So hopefully this is going to hit
• 21:31
  Speaker 1: soon and we'll get a chance. I was looking at
• 21:34
  Speaker 1: one of your wallet tweets here coming over from your
• 21:38
  Speaker 1: team there, and obviously you see Aerodrome right there. This
• 21:40
  Speaker 1: is a dex one of those that potentially could be
• 21:43
  Speaker 1: but you've got others out there, UNISWAP. How is this
• 21:45
  Speaker 1: going to plug into some of these deckses?
• 21:48
  Speaker 2: Is there going to be one? Multiple? What's the process there?
• 21:52
  Speaker 4: Yeah, so we'll start This is going to be DEXes
• 21:54
  Speaker 4: on Base to start, that will be integrated into the
• 21:57
  Speaker 4: coinbase app, and we'll utilize there's number of aggregators out
• 22:00
  Speaker 4: there that help pull together liquidity across different decentralized exchanges,
• 22:04
  Speaker 4: So we want to bring the broadest coverage possible and
• 22:07
  Speaker 4: we'll work with a number of partners across the Base
• 22:09
  Speaker 4: ecosystem to do that. But the net result will be
• 22:13
  Speaker 4: that if there's a token on Base, it'll be available
• 22:16
  Speaker 4: on the Coinbase app. Okay, and that's the key thing,
• 22:19
  Speaker 4: and then you know, we'll expand from there. As I
• 22:22
  Speaker 4: shared earlier, we and the Coinbase app especially is really
• 22:26
  Speaker 4: meant to be a platform for all on chain activity,
• 22:28
  Speaker 4: and so we'll start with dex is on Base, but
• 22:31
  Speaker 4: the same technology and the same platform we're building there
• 22:34
  Speaker 4: will support more networks in the future and more protocols
• 22:37
  Speaker 4: in the future, and it's really a move towards on
• 22:40
  Speaker 4: chain financial services being more accessible through the Coinbase app.
• 22:45
  Speaker 2: How are you going to make money?
• 22:46
  Speaker 1: I mean, is there just going to be a fee
• 22:48
  Speaker 1: or is there going to be some slippage? What's the
• 22:50
  Speaker 1: process of where this will help Coinbase as far as
• 22:54
  Speaker 1: a revenue center.
• 22:56
  Speaker 4: Yeah, the trading product will have will have trading fees
• 22:59
  Speaker 4: similar to any other if you're trading on a dex
• 23:01
  Speaker 4: directly or if you're trading on Coinbase directly, So totally
• 23:05
  Speaker 4: transparent trading fees. But the goal here really a lot
• 23:10
  Speaker 4: of this is about bringing liquidity to Base and to
• 23:14
  Speaker 4: the creators on Base who have been creating assets, creating
• 23:17
  Speaker 4: projects and frankly having a really hard time finding distribution
• 23:21
  Speaker 4: for those projects. So it's as important to us that
• 23:25
  Speaker 4: we spin that flywheel and drive liquidity into the base
• 23:29
  Speaker 4: ecosystem and back to creators so that they can then
• 23:32
  Speaker 4: take that and create more. And that flywheel I think
• 23:35
  Speaker 4: will be beneficial to the whole ecosystem. It will benefit
• 23:38
  Speaker 4: coinbase over the long term. So we're really playing the
• 23:41
  Speaker 4: long game here. It's not about a short term make
• 23:44
  Speaker 4: an extra buck. It's long term build out the ecosystem,
• 23:48
  Speaker 4: help build out on chain financial services, and get to
• 23:50
  Speaker 4: a place where all financial services are on chain. I
• 23:54
  Speaker 4: think we're getting close to that, and that's the vision
• 23:56
  Speaker 4: that we want to keep pushing.
• 23:58
  Speaker 1: Speaking of when you look at the fee structure, this
• 24:01
  Speaker 1: is one of the arguments that we get from our
• 24:02
  Speaker 1: audience quite often, is that the fees that we see with.
• 24:07
  Speaker 2: Coinbase are higher.
• 24:08
  Speaker 1: And if you look at just an example, this is
• 24:11
  Speaker 1: just a screenshot from Phantom showing all the potentials in
• 24:14
  Speaker 1: here in terms of buying eight if you were just
• 24:16
  Speaker 1: purchasing eth.
• 24:17
  Speaker 2: What is the process here?
• 24:19
  Speaker 1: First of all, when you look at the membership of
• 24:21
  Speaker 1: say like a coinbase one versus some of the others
• 24:24
  Speaker 1: that are out there, what and How are you guys
• 24:28
  Speaker 1: going to really address that issue? Because this to me,
• 24:31
  Speaker 1: at some point a sophisticated crypto investor is going to
• 24:35
  Speaker 1: start looking for the best deal. What is the process
• 24:37
  Speaker 1: for you guys to bring that forward.
• 24:40
  Speaker 4: The first thing for us is to create the most
• 24:42
  Speaker 4: value possible for customers. And the value that we're creating
• 24:47
  Speaker 4: goes beyond like an individual trade. It's the safety and
• 24:51
  Speaker 4: the security of the platform. It's the ancillary benefits of
• 24:54
  Speaker 4: being able to bring assets in from your bank instantly
• 24:58
  Speaker 4: up to Coinbase, bringing up to one hundred thousand dollars
• 25:01
  Speaker 4: at a time, being able to bring your assets off
• 25:05
  Speaker 4: the platform instantly if you want to, and having the
• 25:08
  Speaker 4: technology and the capabilities around that.
• 25:10
  Speaker 3: So it's really.
• 25:11
  Speaker 4: About creating as much value as possible for our customers
• 25:15
  Speaker 4: and then really making it as affordable and accessible as possible.
• 25:18
  Speaker 4: And so Coinbase one is a program that we've started
• 25:20
  Speaker 4: to offer zero fee trading. As I mentioned, we've introduced
• 25:24
  Speaker 4: this lower fee tire which is at four dollars ninety
• 25:28
  Speaker 4: nine cents a month. The goal really making it as
• 25:30
  Speaker 4: accessible as possible. We don't want fees to be a
• 25:33
  Speaker 4: barrier to users actually getting into the crypto ecosystem and participating.
• 25:38
  Speaker 4: So we'll continue to push on that and continue creating
• 25:41
  Speaker 4: more value for users. The borrow product is a good example.
• 25:45
  Speaker 4: We're not charging any fees on the borrow product. That's
• 25:48
  Speaker 4: just a great way for people to get more value
• 25:51
  Speaker 4: out of their assets on the platform. And so we'll
• 25:54
  Speaker 4: keep trying to create ways to create as much value
• 25:56
  Speaker 4: as possible for our customers and then also opportunit unities
• 26:00
  Speaker 4: to find. You know, if you if you want to
• 26:03
  Speaker 4: be a Coinbase one member, you get that zero FU
• 26:05
  Speaker 4: trading if you're a more advanced trader. We also Coinbase
• 26:08
  Speaker 4: Advanced Platform, which does have fees that kind of match
• 26:12
  Speaker 4: the really active trader use case where you're interacting directly
• 26:17
  Speaker 4: with open order books.
• 26:19
  Speaker 3: It's a different product.
• 26:20
  Speaker 4: You can access it directly within coinbase dot com and
• 26:23
  Speaker 4: has fees that really match what that investor is looking
• 26:26
  Speaker 4: for as well.
• 26:26
  Speaker 1: You know, I tested all the time, you know of
• 26:29
  Speaker 1: where fees ranges are, and I would agree that Coinbase
• 26:33
  Speaker 1: is competitive. It's not necessarily the lowest, but to your point,
• 26:36
  Speaker 1: there are a lot of benefits that I think a
• 26:38
  Speaker 1: lot of people that are either in crypto or coming
• 26:41
  Speaker 1: into crypto will appreciate, especially around the security side. One
• 26:44
  Speaker 1: thing that I think a lot of people miss, and
• 26:46
  Speaker 1: this is something that I argue the point with our
• 26:48
  Speaker 1: research team all the time, is uh, there's another exchange
• 26:52
  Speaker 1: out there that limits you on what you can withdraw
• 26:56
  Speaker 1: in crypto on a daily basis, and to me, it's
• 26:59
  Speaker 1: a loss of opportunity. If I need to be able
• 27:00
  Speaker 1: to dex or I've got to be able to move
• 27:02
  Speaker 1: crypto quickly, it limits me. So those are the kind
• 27:05
  Speaker 1: of things that I do appreciate about Coinbase when is
• 27:08
  Speaker 1: that you don't limit me on being able to, you know,
• 27:11
  Speaker 1: get to get out quickly. If I need to move
• 27:13
  Speaker 1: into a trade over on UNI swap or somewhere like that,
• 27:15
  Speaker 1: it's just bam, I'm doing it and it's not a problem.
• 27:18
  Speaker 1: So I get the value of where you're going with that.
• 27:22
  Speaker 1: But saying that, at the same time, you've got to
• 27:25
  Speaker 1: look at the current market robin Hood.
• 27:28
  Speaker 2: I'm going to just go right at you with this.
• 27:29
  Speaker 1: When robinhood is growing like crazy, three point two million
• 27:32
  Speaker 1: gold members right now now, granted they're mostly stock trading only,
• 27:36
  Speaker 1: I think less than twenty assets right now in crypto.
• 27:40
  Speaker 1: When coinbase gets ready to offer stocks, which I think
• 27:43
  Speaker 1: is coming later this year. Do you feel like you'll
• 27:46
  Speaker 1: see an explosion in members on the Coinbase one program.
• 27:52
  Speaker 4: I think that there's a number of different features that
• 27:55
  Speaker 4: will drive roast of the Coinbase one program, and we're
• 27:58
  Speaker 4: you know, the Coinbase one card is a great example
• 28:00
  Speaker 4: of this where we do think everyone participating in crypto
• 28:04
  Speaker 4: should be a member of Coinbase one.
• 28:06
  Speaker 3: It just makes it that valuable.
• 28:08
  Speaker 4: We're packing so many benefits into that membership that if
• 28:11
  Speaker 4: you're in crypto, you should be a Coinbase one member.
• 28:14
  Speaker 4: So I think that will continue to grow independent of
• 28:17
  Speaker 4: what's happening with equities or tokenized equities and that whole world.
• 28:22
  Speaker 3: So we'll keep pushing there.
• 28:25
  Speaker 4: I do think that, you know, tokenized equities and token
• 28:28
  Speaker 4: iszed securities in general are a really interesting theme in
• 28:32
  Speaker 4: crypto right now. I think with increased regulatory clarity, there's
• 28:35
  Speaker 4: been a ton of investment behind bringing more real world
• 28:38
  Speaker 4: assets on chain, and so I'm really excited about that
• 28:41
  Speaker 4: independent of Coinbase one, just as a feature for the
• 28:45
  Speaker 4: overall on chain economy, I think will be valuable. It
• 28:48
  Speaker 4: will enable more of these on chain financial services. So
• 28:52
  Speaker 4: excited to see that and excited to also keep investing
• 28:54
  Speaker 4: in coinbase one and driving more growth with that membership.
• 28:57
  Speaker 1: Well, I think when you look at the opportunity, this
• 29:02
  Speaker 1: is a it's a master stroke.
• 29:03
  Speaker 2: Really.
• 29:03
  Speaker 1: I think if you look at the Coinbase one card,
• 29:06
  Speaker 1: if you get it out in mass and we see,
• 29:08
  Speaker 1: you know, the kind of growth potential here, because this
• 29:11
  Speaker 1: will introduce people to crypto maybe for the very first time.
• 29:14
  Speaker 2: I've mentioned this to a handful.
• 29:16
  Speaker 1: I do a seminar and this was one of the
• 29:18
  Speaker 1: topics that we do on weekends. It's usually height now
• 29:20
  Speaker 1: with individual's business owners. I showed this product and I
• 29:23
  Speaker 1: just said, hey, this is a good example of credit
• 29:25
  Speaker 1: card systems that are playing in the crypto space. And
• 29:29
  Speaker 1: the amount of input that I got back on that
• 29:31
  Speaker 1: was probably the biggest interest I had ever seen on
• 29:34
  Speaker 1: any product, you know, coming to crypto. So I think
• 29:37
  Speaker 1: you might be right in terms of growth. Another one
• 29:40
  Speaker 1: is getting into what you guys are doing with coinbas wallet.
• 29:43
  Speaker 4: Now.
• 29:43
  Speaker 1: I know you don't cover the wallet team. We've had
• 29:45
  Speaker 1: the wallet team on before, we're going to get them
• 29:47
  Speaker 1: back on, but you guys have a lot happening within
• 29:51
  Speaker 1: the new beta, and I'm very curious as to what
• 29:54
  Speaker 1: because this is now going to be looking more like
• 29:56
  Speaker 1: a social app.
• 29:56
  Speaker 2: Look at this, guys.
• 29:57
  Speaker 1: This is a really changed the dynamic of how coinbase
• 30:01
  Speaker 1: wallet works. Lots of new features as you can see
• 30:04
  Speaker 1: right there, discovering content, apps all that, as well as people,
• 30:09
  Speaker 1: so there's a social aspect to this, notifications in real time,
• 30:12
  Speaker 1: all those kind of things.
• 30:14
  Speaker 2: I am ready for this, Max. When can we get
• 30:17
  Speaker 2: this in the United States?
• 30:18
  Speaker 3: Yeah, super exciting product.
• 30:20
  Speaker 4: We are in a very limited beta today and we'll
• 30:26
  Speaker 4: be rolling out more over the course of this summer.
• 30:29
  Speaker 4: This is a it's the biggest evolution that we've ever
• 30:32
  Speaker 4: had in the history of coinbas wallet, and it's really
• 30:36
  Speaker 4: being designed to help creators go viral and to enable
• 30:41
  Speaker 4: more interesting ways to engage on chain beyond financial services that.
• 30:45
  Speaker 3: I was talking about in the main coinbase app.
• 30:48
  Speaker 4: We want to enable apps to go viral, We want
• 30:50
  Speaker 4: to enable creators to go viral, and so you can
• 30:53
  Speaker 4: see some of that in the early data that's here today.
• 30:57
  Speaker 4: We've been testing it internally, we're continuing to iterate on it.
• 31:01
  Speaker 4: We want it to be really excellent in time to
• 31:03
  Speaker 4: roll out broader, and so you should see that coming soon.
• 31:08
  Speaker 2: Good to know all right.
• 31:09
  Speaker 1: Last thing I got to hit on is everybody's worried
• 31:11
  Speaker 1: about security right now. This late latest breach with Google
• 31:15
  Speaker 1: Apple seems like the free world in terms of the Internet.
• 31:19
  Speaker 1: We also deal with situations like this in the crypto space.
• 31:23
  Speaker 1: One of the ones that I'm always worried about is
• 31:26
  Speaker 1: coinbas lockouts. We've seen that Brian Armstrong, your CEO, has
• 31:29
  Speaker 1: already addressed this. When you look at the kind of
• 31:32
  Speaker 1: things that are happening now, this was Brian saying that
• 31:35
  Speaker 1: we're getting away from these freezing issues, really addressing this,
• 31:39
  Speaker 1: and at the same time we saw a big fishing
• 31:42
  Speaker 1: operation that came out of some coin base breach.
• 31:47
  Speaker 2: When you look at the future.
• 31:48
  Speaker 1: Of where this is going, and I think it's going
• 31:50
  Speaker 1: to become even more and more important. How are you
• 31:54
  Speaker 1: guys addressing this as a company? What's the what are
• 31:57
  Speaker 1: the main things that you're focused on to basically.
• 32:00
  Speaker 4: This, Yeah, this is this is a huge focus for
• 32:04
  Speaker 4: us and UH and across the whole the whole ecosystem,
• 32:07
  Speaker 4: even beyond crypto. The sophistication of attackers is just increasing dramatically,
• 32:12
  Speaker 4: and so really proud of coinbas frankly for being kind
• 32:16
  Speaker 4: of on the frontier of how to respond to these
• 32:18
  Speaker 4: types of events. But this is something we're investing really
• 32:22
  Speaker 4: heavily in. The challenge here, of course, is enabling people
• 32:27
  Speaker 4: to have as much uh sort of freedom and flexibility
• 32:31
  Speaker 4: to move their move their assets as possible. That's been
• 32:34
  Speaker 4: a core principle as you As you said, it's one
• 32:36
  Speaker 4: of the key value props is you can always get
• 32:38
  Speaker 4: your assets out of coinbase and whatever volumes you need
• 32:42
  Speaker 4: to while ensuring that people do not get scammed and
• 32:45
  Speaker 4: protecting people where we can. And so there's a couple
• 32:49
  Speaker 4: of things that go into that. One is, of course,
• 32:52
  Speaker 4: the kind of really investing in our models to understand
• 32:55
  Speaker 4: is someone being scammed or not. We can do a
• 32:57
  Speaker 4: lot of that work behind the scenes. We can do
• 32:59
  Speaker 4: it better than we have historically, and so we're really
• 33:03
  Speaker 4: tuning those models to ensure that we're not having these
• 33:05
  Speaker 4: false positives where we think someone's getting scammed, we think
• 33:08
  Speaker 4: we're protecting them, but actually it's just creating friction for them.
• 33:12
  Speaker 4: So that's one piece of really tuning those models. Another
• 33:15
  Speaker 4: is giving more control to people to set the right
• 33:18
  Speaker 4: thresholds for themselves. So there's people, for example, if you're
• 33:21
  Speaker 4: an arb trader across different exchanges in DeFi, and you
• 33:24
  Speaker 4: want to move your money around all the time and
• 33:26
  Speaker 4: you're comfortable with your own sort of security setup, we
• 33:29
  Speaker 4: want to give you the freedom to do that. We
• 33:31
  Speaker 4: don't need to have our models try to protect you
• 33:35
  Speaker 4: if you're that kind of customer. And on the other side,
• 33:37
  Speaker 4: if you're the creative customer that's never moving your money
• 33:40
  Speaker 4: off the platform, you just don't need to do that,
• 33:42
  Speaker 4: you don't need to get into SWAB or into DeFi.
• 33:46
  Speaker 4: Then we also want to sort of create the right
• 33:48
  Speaker 4: security model for you. So both the proactive tuning of
• 33:51
  Speaker 4: the models to really ensure that we're absolutely never stopping
• 33:55
  Speaker 4: someone who's trying to get their funds off the platform,
• 33:58
  Speaker 4: but then also giving more control to customers to create
• 34:01
  Speaker 4: the right sort of experience for them.
• 34:03
  Speaker 3: So lots of work going into this.
• 34:05
  Speaker 4: This has been something we've cared deeply about, you know,
• 34:08
  Speaker 4: since the very beginning to create the right balance here,
• 34:11
  Speaker 4: and and we have been we've fallen behind our goals
• 34:15
  Speaker 4: of delivering on that experience. So I'm really glad, as
• 34:19
  Speaker 4: you showed there that we're investing more. Brian has shared
• 34:22
  Speaker 4: how committed we are to ensuring that we solve this problem,
• 34:26
  Speaker 4: and I think it's going to get a lot better
• 34:27
  Speaker 4: and as it does, it will reinforce the fact that
• 34:30
  Speaker 4: coinbas is really the most trusted, the safest platform, and
• 34:35
  Speaker 4: the most accessible to move your funds in.
• 34:36
  Speaker 2: And out max.
• 34:38
  Speaker 1: Are you guys using any kind of AI tools that
• 34:41
  Speaker 1: would help. I've talked to several banking companies who've really
• 34:44
  Speaker 1: started to implement for this very reason, because the fishing
• 34:48
  Speaker 1: attacks that are happening with major banks right now very heavy,
• 34:52
  Speaker 1: and I've had a couple of CEOs and executives that
• 34:55
  Speaker 1: I've had a chance to get on round tables with
• 34:57
  Speaker 1: and this is like one of the key things there
• 34:59
  Speaker 1: really is in on the AI tools to help increase
• 35:03
  Speaker 1: that ability to protect their customers. Are you guys going
• 35:05
  Speaker 1: in that direction as well?
• 35:07
  Speaker 4: Yeah, that's an area that we're investing a lot. And
• 35:12
  Speaker 4: the AI tools that we've been able to build have
• 35:14
  Speaker 4: been incredible, I mean already showed really significant progress against
• 35:18
  Speaker 4: this specific problem, and so we're continuing to do more there.
• 35:23
  Speaker 4: The technology is improving at such an incredible rate that
• 35:26
  Speaker 4: I think the outcomes that we'll be able to deliver
• 35:29
  Speaker 4: to customers on this will also improve at a tremendous rate,
• 35:32
  Speaker 4: and it's just about getting more precise in understanding what's
• 35:36
  Speaker 4: happening in any given moment so that we're not blocking
• 35:39
  Speaker 4: at the wrong times, we are protecting people and providing
• 35:42
  Speaker 4: the tools at the right times. And even in the
• 35:45
  Speaker 4: last couple of months there's been just tremendous progress on that.
• 35:48
  Speaker 4: But we're setting a very very high bar for ourselves
• 35:50
  Speaker 4: and we'll continue to push there, including with the usage
• 35:53
  Speaker 4: of AI internally.
• 35:55
  Speaker 1: Yeah, last point is fed's probably going to give us
• 35:58
  Speaker 1: a rate cut I'm hearing now maybe July. That would
• 36:01
  Speaker 1: initiate I think a market spin up fairly heavily. If
• 36:04
  Speaker 1: we get some macro relief globally, this could really create
• 36:08
  Speaker 1: a perfect storm for another push to an eventual bull
• 36:14
  Speaker 1: run here in crypto in general. Is coinbase ready for that,
• 36:17
  Speaker 1: because we've had problems in the past where when there's
• 36:21
  Speaker 1: massive activity, and of course, granted it was back in
• 36:24
  Speaker 1: twenty twenty one, but most likely we're going to see
• 36:27
  Speaker 1: possibly tens and tens of millions of people coming into
• 36:31
  Speaker 1: this ecosystem. They're probably going to choose Coinbase to come in.
• 36:34
  Speaker 2: So how are you guys prepared?
• 36:36
  Speaker 3: Yeah, I'm really proud of the work we've done.
• 36:38
  Speaker 4: Frankly, we try to take advantage of the bear markets
• 36:41
  Speaker 4: to build and be prepared for future bull runs, and
• 36:45
  Speaker 4: so really proud of the work the team's done to
• 36:47
  Speaker 4: prepare for increased volumes and increased sign ups. I think
• 36:51
  Speaker 4: there will be I don't know when it will happen,
• 36:54
  Speaker 4: but I think there will be a continued mass onboarding
• 36:58
  Speaker 4: event into coin base and into crypto, and so you know,
• 37:02
  Speaker 4: investing in that infrastructure, but also building out the products
• 37:05
  Speaker 4: and the services that people want that go beyond a
• 37:07
  Speaker 4: bull run so that we're not in this cyclical mode anywhere.
• 37:10
  Speaker 4: But actually once you come in, hey, I can actually
• 37:13
  Speaker 4: get more of my financial services out of this. I've
• 37:15
  Speaker 4: got my coinbased one card, so I can spend every
• 37:17
  Speaker 4: day that doesn't depend on the volatility of the market.
• 37:20
  Speaker 4: That's just an everyday useful product to have. We're being
• 37:24
  Speaker 4: able to borrow against your bitcoin so that you can
• 37:26
  Speaker 4: save and earn more. And these are products that we
• 37:29
  Speaker 4: want to continue building out into that portfolio so your
• 37:32
  Speaker 4: entire personal financial life can be powered on Coinbase, powered
• 37:37
  Speaker 4: by on chain financial services, and that it won't just
• 37:41
  Speaker 4: be a spike and then a bear market after it.
• 37:43
  Speaker 4: It will be continued onboard and continued engagement, continued value
• 37:48
  Speaker 4: from the on chain ecosystem for people all over the world.
• 37:51
  Speaker 4: So we are we are ready, we are preparing. We've
• 37:55
  Speaker 4: got a lot more to build to really deliver on that,
• 37:57
  Speaker 4: but I think that we'll be ready when it comes,
• 38:01
  Speaker 4: and coinbas will be the best place for those people
• 38:03
  Speaker 4: to onboard into crypto.
• 38:04
  Speaker 2: Well, it's good stuff, man.
• 38:05
  Speaker 1: I'm glad to hear these things because obviously we are
• 38:08
  Speaker 1: big fans of the platform, but we're also critics of
• 38:12
  Speaker 1: all platforms in the sense of we want better products
• 38:15
  Speaker 1: to come out of this. At the end, it's going
• 38:17
  Speaker 1: to help everybody. So I'm glad you guys are focused
• 38:19
  Speaker 1: on that. Max has been great having you on. Thank
• 38:21
  Speaker 1: you so much for coming in today. We appreciate it.
• 38:24
  Speaker 1: Thanks so much, Paul, you bet all right. So you guys,
• 38:27
  Speaker 1: if you're not in our Diamond Circle, that's our own
• 38:29
  Speaker 1: private group. You guys can get additional content, some of
• 38:31
  Speaker 1: our research, all that kind of stuff that we prep
• 38:33
  Speaker 1: for here on the show, and all you have to
• 38:35
  Speaker 1: do is join.
• 38:36
  Speaker 2: It's a link down below. It's very easy to set.
• 38:37
  Speaker 1: Up and follow me out there on X at Paul Baron.
• 38:40
  Speaker 1: We'll catch you next time, right here on tech Path