Latest / The Paul Barron Crypto Show / Chainlink ACCELERATES Solana's Growth🔥🚀 w/Co-founder Sergey Nazarov🔗

Transcript

Chainlink ACCELERATES Solana's Growth🔥🚀 w/Co-founder Sergey Nazarov🔗 · The Paul Barron Crypto Show

• 0:06
  Speaker 1: Chain Link had tons of news that they dropped at
• 0:08
  Speaker 1: the Salona Accelerate event. Today we're going to be breaking
• 0:11
  Speaker 1: that down with Sergey Nazarov, who's going to be joining
• 0:13
  Speaker 1: us here in just a moment. You don't want to
• 0:15
  Speaker 1: miss it. My name is Paul Barren. Welcome back into
• 0:16
  Speaker 1: tech Path. I do want to thank our sponsor, and
• 0:18
  Speaker 1: that is Coinbase, And I think one of the things
• 0:21
  Speaker 1: around Coinbase is it's very easy for you guys to
• 0:23
  Speaker 1: sign up and actually make your first trades. All you
• 0:26
  Speaker 1: have to do is use our link down below. We'll
• 0:27
  Speaker 1: put the right link for you. So you click on that,
• 0:30
  Speaker 1: you're going to get up to two hundred bucks in
• 0:32
  Speaker 1: a reward right now. Sometimes they do this by fifty
• 0:36
  Speaker 1: and earn fifty, so it depends on which link you hit,
• 0:39
  Speaker 1: but either one of those it's going to get you
• 0:40
  Speaker 1: on your journey for crypto. Let's get into it today.
• 0:44
  Speaker 1: Of course, joining me is Sergey Nazareov, who's been on
• 0:47
  Speaker 1: our show before, coming in as the co founder of
• 0:50
  Speaker 1: chain Link.
• 0:50
  Speaker 2: Howardy, Sergey, good good, Good to see you again.
• 0:54
  Speaker 1: Yeah, nice to see you. And of course, lots of
• 0:56
  Speaker 1: news coming out of New York during the accelerate conference.
• 1:00
  Speaker 1: You guys of course dropped your pr on chain links.
• 1:03
  Speaker 1: CCIP is officially live now on Solana. This of course
• 1:07
  Speaker 1: could really supercharge I agree with your headline there really
• 1:10
  Speaker 1: supercharge the growth of Salana. DeFi nineteen billion in assets.
• 1:16
  Speaker 1: Can you first of all break it down for our
• 1:19
  Speaker 1: audience that may not understand the importance of CCIP and DeFi.
• 1:26
  Speaker 2: Sure, So, CCIP is a very widely used cross chain
• 1:30
  Speaker 2: protocol that has many high quality assets on it, both
• 1:33
  Speaker 2: in the DeFi world and now increasingly in the capital
• 1:35
  Speaker 2: markets institutional world, and so those assets being able to
• 1:39
  Speaker 2: flow into Solana benefits the Slana ecosystem because it means
• 1:42
  Speaker 2: there's more assets that can be traded, exchanged used in
• 1:47
  Speaker 2: the Salana ecosystem. CCIP is pretty much the most secure,
• 1:54
  Speaker 2: most widely used cross chain mechanism in the capital markets.
• 1:58
  Speaker 2: We've renounced with more and more institutions recently. Those institutions
• 2:02
  Speaker 2: continue to choose CCIP because of its security compliance and
• 2:06
  Speaker 2: various other guarantees that bridges don't have. You know, there
• 2:11
  Speaker 2: are all these security risks with other bridges, all these
• 2:14
  Speaker 2: legal issues with other bridges that CCIP just doesn't have,
• 2:17
  Speaker 2: and so Solana's focus now on what they call the
• 2:20
  Speaker 2: Internet of Finance is actually very compatible with CCIP, which
• 2:25
  Speaker 2: is so getting so widely adopted by institutions.
• 2:28
  Speaker 1: If you guys jump over to the chain Link blog,
• 2:30
  Speaker 1: they've got a really good statement out here that came
• 2:32
  Speaker 1: in last year. This was kind of how this works
• 2:35
  Speaker 1: with some of the organizations that Serge mentioned there, including
• 2:38
  Speaker 1: major banking, capital market and institutions, which is really where
• 2:41
  Speaker 1: the future of this could be. Going back to your
• 2:44
  Speaker 1: point in terms of liquidity, this is a supercharge event
• 2:48
  Speaker 1: in terms of the opportunity going forward. And you look
• 2:51
  Speaker 1: at also the idea of where Jupiter. This is Jupiter perpetuals.
• 2:57
  Speaker 1: They're now tapping you guys chain link for real time
• 3:00
  Speaker 1: DeFi also on Solana. I look at Jupiter and I think,
• 3:04
  Speaker 1: all right, Jupiter is one of the major platforms out there.
• 3:07
  Speaker 1: There are others obviously that play into this around the
• 3:11
  Speaker 1: DeFi side for Solana. How will the partnership start to
• 3:15
  Speaker 1: come together for you guys as you start to build
• 3:18
  Speaker 1: this out.
• 3:21
  Speaker 2: So what generally happens is on chains where chain link
• 3:24
  Speaker 2: hasn't been made available yet because of the integration effort
• 3:28
  Speaker 2: that it takes to integrate it very securely. There's a
• 3:32
  Speaker 2: large group of applications that already want to use chain
• 3:35
  Speaker 2: link and have already committed to using chain link, and
• 3:38
  Speaker 2: they're just waiting for the integration to complete. So Jupiter Camino,
• 3:42
  Speaker 2: the large lending protocol on Solana GMx launched on Solana
• 3:46
  Speaker 2: with US and so basically the security and reliability of
• 3:51
  Speaker 2: chain link is why it powers over sixty percent of
• 3:54
  Speaker 2: DeFi today. Because the other oracles, whether they're bridge oracles
• 3:58
  Speaker 2: or whether they're data workles, they just continue to not
• 4:02
  Speaker 2: meet the same standard of security. And it's also why
• 4:05
  Speaker 2: chain link keeps getting preferred by the capital markets. It's
• 4:08
  Speaker 2: because of that standard of security, because what happens when
• 4:11
  Speaker 2: you're a small project is you're not evaluating security as much.
• 4:15
  Speaker 2: You can build your own oracle of some kind, or
• 4:18
  Speaker 2: you can use some startup that launched on your chain
• 4:21
  Speaker 2: and you know it's available. But as you have more
• 4:24
  Speaker 2: value in the system, similar to capital markets and banks,
• 4:28
  Speaker 2: your valuation and importance for security goes up. Right, you
• 4:32
  Speaker 2: start to value security much more because you become a target. Right,
• 4:37
  Speaker 2: if you only secure a dollar, you know you're not
• 4:39
  Speaker 2: a real target, right, secure a billion, ten one hundred
• 4:42
  Speaker 2: a billion. The more you secure, the more you care
• 4:44
  Speaker 2: about security. And so what we see is that because
• 4:48
  Speaker 2: of chain link security when it goes live on many
• 4:51
  Speaker 2: of these chains, you kind of have this migration onto
• 4:55
  Speaker 2: chain link because many of the top protocols have grown
• 4:59
  Speaker 2: and they if they've prioritized making it secure over other things,
• 5:03
  Speaker 2: right because they consistently see others getting hacked that don't
• 5:06
  Speaker 2: use chain link, and then when they use chain link,
• 5:09
  Speaker 2: they don't have a problem.
• 5:10
  Speaker 1: When you look at the scale of the market right now,
• 5:13
  Speaker 1: serge the size of what we're seeing in terms of
• 5:16
  Speaker 1: institutional moves, which I would say to a certain extent,
• 5:19
  Speaker 1: is still very early. Where do you think this can
• 5:22
  Speaker 1: go in terms of where chain links position as somewhat
• 5:27
  Speaker 1: of that cornerstone for the industry, especially around defive. Where
• 5:31
  Speaker 1: do you think this can go if you were to
• 5:33
  Speaker 1: look out in a couple of years and say this
• 5:35
  Speaker 1: is where chain link will be.
• 5:38
  Speaker 2: I think we're in the early stages of this convergence
• 5:41
  Speaker 2: of defin and trati fi. We're seeing more and more
• 5:44
  Speaker 2: institutions go on chain, provide payment on chain, provide assets
• 5:49
  Speaker 2: on chain. I think we're going to enter a world
• 5:51
  Speaker 2: of tokenized equities, tokenized commodities, tokenized funds, and all of
• 5:56
  Speaker 2: those institutions highly value security, reliability and compliance, and so
• 6:02
  Speaker 2: chain Link already powers the majority of DeFi because of
• 6:05
  Speaker 2: that dynamic that I describe, whereas you secure more value,
• 6:08
  Speaker 2: you value security right because you're securing more user funds,
• 6:12
  Speaker 2: there's higher risk of you getting attacked, and something that
• 6:15
  Speaker 2: secures less value you become an attractive target. And the
• 6:19
  Speaker 2: institutions have been operating in that way now for decades.
• 6:24
  Speaker 2: And so I think when they evaluate the other systems
• 6:26
  Speaker 2: out there that are run on a single node, but
• 6:29
  Speaker 2: they say they're decentralized, or they operate in some highly
• 6:32
  Speaker 2: insecure way where they keep getting hacked again and again,
• 6:36
  Speaker 2: that these things will just not come anywhere close to
• 6:40
  Speaker 2: meeting their standards, whereas chain Link has been very specifically
• 6:44
  Speaker 2: built by a community of security experts and has really
• 6:48
  Speaker 2: invested in meeting that high standard. And this is why
• 6:51
  Speaker 2: you see it getting preferred not only by the larger
• 6:54
  Speaker 2: protocols that fall into the dynamic of having to value
• 6:58
  Speaker 2: security because of the amount the secure but also by
• 7:01
  Speaker 2: the capital markets and institutions which have been thinking in
• 7:05
  Speaker 2: that way for decades. So exactly. Yeah, that's what I
• 7:09
  Speaker 2: see happening. All right.
• 7:11
  Speaker 1: Okay, so you mentioned one thing that I think is important,
• 7:14
  Speaker 1: and that is this transition that we're already starting to
• 7:16
  Speaker 1: see happen. Now here's Kraken who is tapping Solana as
• 7:21
  Speaker 1: a potential for tokenized stocks, and you look at this
• 7:25
  Speaker 1: shift that could be a current. This is very early
• 7:27
  Speaker 1: stage right now. This most likely will happen in other ecosystems.
• 7:32
  Speaker 1: But serge, in your opinion, how would this affect maybe
• 7:36
  Speaker 1: companies like even Robinhood going forward. If we really do
• 7:40
  Speaker 1: see a tokenized securities layer that starts to make it
• 7:45
  Speaker 1: make its way into.
• 7:46
  Speaker 2: The market, I would say the race is on. I
• 7:51
  Speaker 2: would say, now everybody from the financial market, infrastructure community,
• 7:55
  Speaker 2: the banking community, to the asset management community clearly see
• 7:59
  Speaker 2: that there's large enough market on chain, there's enough liquidity
• 8:02
  Speaker 2: on chain to justify issuing all of these assets, there's
• 8:07
  Speaker 2: enough stable coin value, there's enough ways to get paid
• 8:10
  Speaker 2: for these assets on chain, and we're kind of at
• 8:13
  Speaker 2: this critical tipping point now where I think you can
• 8:16
  Speaker 2: get into a virtuous cycle of more and more high
• 8:19
  Speaker 2: quality assets leading to more and more payment systems and
• 8:23
  Speaker 2: methods of payment becoming compatible with blockchains. Interesting, that's or
• 8:28
  Speaker 2: liquidity coming into blockchains, which creates the larger and larger
• 8:32
  Speaker 2: market for the assets. Right, So you kind of just
• 8:35
  Speaker 2: start to have this cycle of high quality inventory, more
• 8:39
  Speaker 2: and more liquidity, and that should lead to the success
• 8:42
  Speaker 2: of the issuers, the success of the assets, which will
• 8:46
  Speaker 2: naturally be seen by the other issuers and then they
• 8:48
  Speaker 2: will come into the market to partake and be part
• 8:51
  Speaker 2: of that success. Right. So this is kind of where
• 8:55
  Speaker 2: we are. I think now we're at the start of
• 8:56
  Speaker 2: this virtuous cycle where there's enough value you to justify
• 9:01
  Speaker 2: more issuances, there's enough liquidity to justify more issuances, and
• 9:07
  Speaker 2: I think it's going to kind of snowball from here
• 9:11
  Speaker 2: as long as the larger global macro environment stays positive.
• 9:15
  Speaker 1: Yeah, I think that's going to be the key. This
• 9:17
  Speaker 1: was an interesting statement from you guys as ex account.
• 9:20
  Speaker 1: The thing that I drew to it was the milestone
• 9:23
  Speaker 1: marking the first of its kind cross chain. This is
• 9:26
  Speaker 1: atomic settlement of tokenized assets between connexus there and a
• 9:30
  Speaker 1: permission blockchain network. So this is back to your point,
• 9:33
  Speaker 1: how we're going to see that uptake within the banking
• 9:36
  Speaker 1: community going forward. So you look at that and then
• 9:40
  Speaker 1: you look at your statement. Here the similarity between all
• 9:44
  Speaker 1: of these government chains, cryptocurrencies, tokenized RBA's, privates, et cetera.
• 9:49
  Speaker 1: To your point, chainling interoperability is kind of the king
• 9:52
  Speaker 1: of the hill there, and I think that is a
• 9:55
  Speaker 1: huge part of this. What do you feel is going
• 9:59
  Speaker 1: to happen?
• 9:59
  Speaker 2: First?
• 10:00
  Speaker 1: Do you feel like we're going to see more of
• 10:02
  Speaker 1: the traditional finance side of it RWA's or are we
• 10:07
  Speaker 1: going to see something more from the macro side that
• 10:10
  Speaker 1: would come from governments, municipalities, agencies, etc. In terms of
• 10:15
  Speaker 1: adoption layers happening or is it all going to happen
• 10:17
  Speaker 1: at once.
• 10:20
  Speaker 2: I think it's RWA's for assets and payments. The assets
• 10:24
  Speaker 2: side has been tokenized funds, some from institutions, some from FinTechs.
• 10:30
  Speaker 2: I think now you're going to start seeing things beyond
• 10:32
  Speaker 2: tokenized funds, like tokenized equities, tokenized commodities getting more popular.
• 10:37
  Speaker 2: Then I continue to see more and more stable coins appear,
• 10:41
  Speaker 2: More and more dollars and other fiat currency turned into
• 10:44
  Speaker 2: stable coins, which is liquidity that can be used to
• 10:47
  Speaker 2: purchase those assets. We are working heavily on getting payment
• 10:51
  Speaker 2: systems connected to blockchains, so that the liquidity inside of
• 10:54
  Speaker 2: those payment systems can be used to buy the digital
• 10:58
  Speaker 2: assets n chain, once again accelerating and speeding up that
• 11:01
  Speaker 2: virtuous cycle in positive ways. And so I think it'll
• 11:06
  Speaker 2: happen at this kind of grassroots, innovative level of the
• 11:11
  Speaker 2: fastest moving institutions and some of the some of the
• 11:14
  Speaker 2: most kind of forward looking and competent fintech and blockchain
• 11:19
  Speaker 2: teams or digital assets and payments. And as the digital
• 11:25
  Speaker 2: assets and payments world starts to see more volume, as
• 11:29
  Speaker 2: you start to see trading pairs appear more and more
• 11:31
  Speaker 2: on public chains and some private chains for derivatives, you'll
• 11:36
  Speaker 2: start to see enough volume to justify that virtuous cycle. Right, Like,
• 11:40
  Speaker 2: what we need to do now as an industry is
• 11:42
  Speaker 2: make sure the systems are secure, make sure they can
• 11:46
  Speaker 2: meet the compliance needs of the large institutional issuers and purchasers,
• 11:51
  Speaker 2: and make sure that well I know how we can
• 11:53
  Speaker 2: make sure this, but hope that the global macroeconomy keeps
• 11:56
  Speaker 2: going in a positive direction so that this new way
• 12:00
  Speaker 2: of issuance, this new way of payment, this new way
• 12:05
  Speaker 2: of doing collateral management UH has a market that's receptive
• 12:09
  Speaker 2: to adopting it right. So if all three of those
• 12:11
  Speaker 2: things happen, I think we're we're really kind of pretty
• 12:17
  Speaker 2: well into into the beginning of that virtuous cycle.
• 12:19
  Speaker 1: Yeah, in a good place at the at the right time.
• 12:22
  Speaker 1: Some things that we've been watching that seem to be
• 12:24
  Speaker 1: a little bit under the radar that you know, we
• 12:26
  Speaker 1: showed a little bit there of the x swap. Salona
• 12:28
  Speaker 1: is now on x swap.
• 12:30
  Speaker 3: Uh.
• 12:30
  Speaker 1: This is going to enable some unique functionality, including one
• 12:34
  Speaker 1: which would be EVM liquidity. Let me kind of zoom
• 12:37
  Speaker 1: in on that. And this is a good example of
• 12:40
  Speaker 1: this where we could see meme coins at some point
• 12:43
  Speaker 1: shifting over to r BA, E, to SOUL, et cetera,
• 12:47
  Speaker 1: any chain one platform kind of scenario, this of course
• 12:50
  Speaker 1: being built on chain link. When you think about memes
• 12:53
  Speaker 1: today and how big of an ecosystem Solana has been
• 12:57
  Speaker 1: around that, do you feel that they are kind of
• 13:00
  Speaker 1: of this next generation of liquidity for these early stage markets,
• 13:05
  Speaker 1: especially around whether it's our abas or other assets out there.
• 13:12
  Speaker 2: Meme coins are not something I totally understand and have
• 13:16
  Speaker 2: a lot of expertise in, but to me, at least initially,
• 13:19
  Speaker 2: they appear to be highly speculative, and so they attract
• 13:22
  Speaker 2: a certain type of market participant, and some of those
• 13:26
  Speaker 2: market participants do well and some of them don't do well.
• 13:29
  Speaker 2: But in my experience, the subset of market participants, whether
• 13:33
  Speaker 2: they're miners in the early days of our industry or
• 13:36
  Speaker 2: people who invested in the first tokens even before Ethereum,
• 13:39
  Speaker 2: or then the people who invested in Ethereum, right, the
• 13:42
  Speaker 2: games that they make often find their way back into
• 13:47
  Speaker 2: the crypto universe. Right, So, if you made some kind
• 13:51
  Speaker 2: of games from from some kind of meme cooin speculation,
• 13:56
  Speaker 2: a large percentage of that will flow back into the
• 13:59
  Speaker 2: crypt the world as liquidity and then be used on
• 14:03
  Speaker 2: various things, including RWA's if you want to diversify towards
• 14:08
  Speaker 2: something more stable than predictable. So generally speaking, my view
• 14:12
  Speaker 2: is that the more liquidity there is in the blockchain
• 14:16
  Speaker 2: stack and the blockchain format and the blockchain way of
• 14:19
  Speaker 2: doing transactions, the more payment systems, the more value in
• 14:23
  Speaker 2: stable coins, the more high quality assets that can be
• 14:27
  Speaker 2: an inventory that can be bought with those payment systems
• 14:29
  Speaker 2: and stable coins, the better off our industry will be.
• 14:34
  Speaker 1: Yeah, here, I've got a clip here that I think
• 14:36
  Speaker 1: maybe gives some validity to this as well. This is
• 14:39
  Speaker 1: Hadley Stern. We had him on from Marinate the other
• 14:42
  Speaker 1: day and he talks about this.
• 14:43
  Speaker 3: But take a look like, why did mean coins happen
• 14:47
  Speaker 3: on Solana? It's I don't think it's a cultural thing.
• 14:50
  Speaker 3: I just think it's because the chain works and the
• 14:52
  Speaker 3: chain is cheap. So and if you look at trump
• 14:56
  Speaker 3: coin for better or worse, the first twenty four hours
• 14:59
  Speaker 3: that it was release, the Salana blockchain did about ten
• 15:02
  Speaker 3: percent of Nasdaq volume and there was basically there's no
• 15:05
  Speaker 3: hiccup on the blockchain level. There were some hiccups on
• 15:08
  Speaker 3: some of the decks. Is that's kind of interesting. So
• 15:11
  Speaker 3: then really mean coins are kind of the MVP for
• 15:14
  Speaker 3: real world assets on chain at scale. No, Solana is
• 15:18
  Speaker 3: a functioning network because it's meme coins and that's where
• 15:21
  Speaker 3: they took off. And then what can we learn from
• 15:24
  Speaker 3: that as we look to build real world infrastructure.
• 15:27
  Speaker 1: And I think one guy that really understands this is
• 15:31
  Speaker 1: President Trump. You know, he had his Trump Dinner last
• 15:35
  Speaker 1: night and there were some pretty big people here. But
• 15:37
  Speaker 1: the point is is that you have the president of
• 15:39
  Speaker 1: the United States really understanding the ecosystem of blockchain and
• 15:44
  Speaker 1: one of the things around it, such as meme coins,
• 15:46
  Speaker 1: So it does play into maybe the future of this.
• 15:49
  Speaker 1: So I would agree with what you were saying is
• 15:52
  Speaker 1: the liquidity opportunity is definitely one to keep an eye on.
• 15:56
  Speaker 1: I want to get into your opinion in reference to
• 15:59
  Speaker 1: the stable coin bill that's going through the Senate, well
• 16:03
  Speaker 1: eventually the Senate, and that is the genius act. When
• 16:07
  Speaker 1: you look at the potential here of this first happening
• 16:10
  Speaker 1: most likely going to what do you feel is going
• 16:13
  Speaker 1: to be the true impact what would be the next
• 16:16
  Speaker 1: steps after a stable coin bill is in place and
• 16:20
  Speaker 1: becomes law.
• 16:23
  Speaker 2: Not to be too repetitive, but liquidity, right, it's the
• 16:27
  Speaker 2: ability to have more cash on chain, and that on
• 16:32
  Speaker 2: chain cash can then be used by more accounts to
• 16:35
  Speaker 2: buy the inventory of assets, whether they're highly speculative mean coins,
• 16:40
  Speaker 2: whether they're less speculative cryptocurrencies, or whether they're nonspeculative hard
• 16:46
  Speaker 2: asset backed real world assets. Right, the stable coin legislation
• 16:51
  Speaker 2: will allow more and more institutions and various other issuers
• 16:55
  Speaker 2: to issue their own stable coin, right, and that issuance
• 16:59
  Speaker 2: of a stable coin fundamentally means that instead of purchasing
• 17:04
  Speaker 2: power or cash or liquidity being outside of the blockchain system.
• 17:08
  Speaker 2: It's now inside of the blockchain system, it's inside the
• 17:11
  Speaker 2: Web three financial system. So I think that will be
• 17:17
  Speaker 2: massively beneficial because it's a matter of the cash that's available. Right,
• 17:22
  Speaker 2: what is the market size of what your asset can
• 17:26
  Speaker 2: access if you issue it into the Web three financial system.
• 17:30
  Speaker 2: If it's two hundred billion dollars in stable coins, okay,
• 17:33
  Speaker 2: that's an impressive market size. If it's a trillion dollars
• 17:38
  Speaker 2: in stable coins, that's a different story. If it's ten
• 17:41
  Speaker 2: trillion dollars in stable coins, that's a market everybody wants
• 17:46
  Speaker 2: to issue an asset into. Because if if in a
• 17:50
  Speaker 2: very small percentage of that decides to buy your asset,
• 17:53
  Speaker 2: you're extremely successful as an asset issuer. So I think
• 17:57
  Speaker 2: you have these two sides. You have the payment side
• 17:59
  Speaker 2: of the app side. They both have to grow. But
• 18:03
  Speaker 2: if one of them really shoots out and starts creating
• 18:06
  Speaker 2: really high quality on chain tokens, in this case stable coins,
• 18:11
  Speaker 2: you enter kind of a different and new exciting world
• 18:14
  Speaker 2: for our.
• 18:14
  Speaker 1: Industry, no doubt. With that being the case, Serge, you
• 18:19
  Speaker 1: look at the preparation that some of the banks are
• 18:22
  Speaker 1: making right now, here's JP Morgan and Bank of America.
• 18:25
  Speaker 1: There's many there's some congloberates out there that are looking
• 18:27
  Speaker 1: at the potential to go out with a joint stable coin.
• 18:31
  Speaker 1: Do you think this will work? Do you think banks
• 18:33
  Speaker 1: could enter in to the stable coin race and go
• 18:37
  Speaker 1: head to head with companies like Circle and Tether.
• 18:43
  Speaker 2: I think banks will enter into every race where you
• 18:46
  Speaker 2: have a form of payment or a type of asset
• 18:51
  Speaker 2: that is on chain as long as they are able
• 18:54
  Speaker 2: to do it legally. So the only reason that the
• 18:57
  Speaker 2: banks haven't entered the stable coin race, or the RWA
• 19:01
  Speaker 2: issuance race, or the or the fund tokenization race as
• 19:06
  Speaker 2: much as they as they could have is just lack
• 19:08
  Speaker 2: of legal clarity, which creates a kind of compliance risk.
• 19:14
  Speaker 2: And banks pay tens of billions of dollars in fines
• 19:17
  Speaker 2: every year for not fulfilling their compliance obligations to governments,
• 19:22
  Speaker 2: so they're extremely sensitive to this, like the non compliance
• 19:27
  Speaker 2: can wipe out a bank's profit basically, So if you
• 19:31
  Speaker 2: can comply and you can make a stable coin, and
• 19:34
  Speaker 2: you've been in the payments business and institutional or retail
• 19:37
  Speaker 2: payments business for the last thirty forty to fifty years.
• 19:40
  Speaker 2: Of course, you're making a stable coin if you're in
• 19:43
  Speaker 2: the equities or commodities or asset management fund business, and
• 19:48
  Speaker 2: you can make a tokenized equity, tokenized commodity, tokenized fund
• 19:53
  Speaker 2: and open it up to a large market of purchasers
• 19:55
  Speaker 2: because of all the stable coin liquidity and other forms
• 19:58
  Speaker 2: of payment on chain, then it's a it's a fantastic opportunity.
• 20:04
  Speaker 2: This is why when people talk to me and to
• 20:07
  Speaker 2: us about regulation and DC we explain that it's kind
• 20:11
  Speaker 2: of the final on block for our industry because there's
• 20:14
  Speaker 2: just such a large group of market participants that are
• 20:19
  Speaker 2: limited legally from entering our industry. And then they also
• 20:23
  Speaker 2: have certain technical limitations around data cross chain identity, which
• 20:28
  Speaker 2: are the problems that we solve. But in the process
• 20:30
  Speaker 2: of solving those data connectivity and identity issues, we understand
• 20:37
  Speaker 2: them pretty well. And it's it's pretty clear to me
• 20:40
  Speaker 2: that you know, we're ready to solve all of those
• 20:44
  Speaker 2: technical issues for them, and they're now becoming quite ready,
• 20:47
  Speaker 2: as you can tell from the announcements you showed to
• 20:50
  Speaker 2: UH to launch.
• 20:52
  Speaker 1: Yeah, the I think is an exciting time for anybody
• 20:55
  Speaker 1: that's looking at digital assets as a future, whether you're
• 20:57
  Speaker 1: looking at as a career or you're looking at as
• 20:59
  Speaker 1: an investment vehicle, or even a business now that's starting
• 21:02
  Speaker 1: to utilize digital assets within it, the opportunities are going
• 21:05
  Speaker 1: to be really growing. Last question to you, Serge, you
• 21:08
  Speaker 1: look at the current framework of what's been proposed out
• 21:12
  Speaker 1: there on the market between coinbase and Ripple taking a
• 21:17
  Speaker 1: run at circle, how do you see that playing out
• 21:21
  Speaker 1: in the market and what kind of impact do you
• 21:23
  Speaker 1: think it would have.
• 21:29
  Speaker 2: I think there is there is a kind of advantage
• 21:32
  Speaker 2: with stable coins from getting some early adoption and getting
• 21:35
  Speaker 2: highly widely integrated. But I think fundamentally stable coins are
• 21:39
  Speaker 2: a matter of distribution, and I think that the amount
• 21:43
  Speaker 2: of people and accounts that are now on top of
• 21:47
  Speaker 2: a stable coin is a very small percentage of the
• 21:51
  Speaker 2: amount of cash and the amount of client demand and
• 21:53
  Speaker 2: the amount of liquidity that could be represented as a
• 21:56
  Speaker 2: stable coin. So I think it's I think it's pretty early.
• 22:00
  Speaker 2: I think if some acquisition like that happens, it'll it'll
• 22:04
  Speaker 2: be interesting. But it reminds me of like the acquisitions
• 22:08
  Speaker 2: that would be happening in the very earliest days of
• 22:11
  Speaker 2: the Internet. Yeah, and some of those workouts. Some of
• 22:14
  Speaker 2: those didn't work out. Sometimes the company that got acquired
• 22:18
  Speaker 2: became the whole thing, right, so sometimes it was fantastically successful.
• 22:25
  Speaker 2: That's what it reminds me of.
• 22:27
  Speaker 1: Well, listen, there is a lot going on right now, Serge,
• 22:30
  Speaker 1: so we'll definitely keep you on tap as things start
• 22:33
  Speaker 1: to materialize in the markets with the stable Cooin Bill
• 22:36
  Speaker 1: as well as maybe the Market Structure Act, that's going
• 22:38
  Speaker 1: to really start to change things, I think globally for
• 22:41
  Speaker 1: the digital asset market. So thank you again for coming
• 22:44
  Speaker 1: in today. We appreciate it, my pleasure. You bet are
• 22:48
  Speaker 1: you guys? If you're not in the Diamond Circle, that's
• 22:50
  Speaker 1: our own private group that you can take part in,
• 22:52
  Speaker 1: and it's our email list we drop in additional research.
• 22:56
  Speaker 1: It also reminds you of different videos that we drop,
• 22:57
  Speaker 1: et cetera.
• 22:58
  Speaker 2: It's a good way to.
• 22:59
  Speaker 1: Keep up with what we're doing here on the Deep Dive.
• 23:02
  Speaker 1: Of course, if you want to talk to me, you
• 23:03
  Speaker 1: can actually do that in our telegram group. We also
• 23:05
  Speaker 1: leave a link down below for that. Of course, follow
• 23:08
  Speaker 1: me out there on x at Paul Baron. We'll catch
• 23:10
  Speaker 1: you next time right here on tech Path