Latest / The Paul Barron Crypto Show / XRP FedWire Launch PANICS JP Morgan!!🔥Canary Capital CEO Steven McClurg🚨

Transcript

XRP FedWire Launch PANICS JP Morgan!!🔥Canary Capital CEO Steven McClurg🚨 · The Paul Barron Crypto Show

• 0:06
  Speaker 1: Some big things happening this week that could cause the
• 0:08
  Speaker 1: banks to panic a little bit. I'll break it down
• 0:11
  Speaker 1: for you. My name is Paul Barren. Welcome back into
• 0:12
  Speaker 1: the show. Let's get started. I do want to thank
• 0:14
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• 0:41
  Speaker 1: get started. All right, I want to hit a couple
• 0:43
  Speaker 1: of points real quick. As you guys know. ISO twenty
• 0:46
  Speaker 1: two to two begins today July fourteenth. All this is
• 0:50
  Speaker 1: going on, and of course with that, the implementation around
• 0:54
  Speaker 1: this is going to start to have a bit of
• 0:56
  Speaker 1: effect on fedwire. Now, the question is is how much
• 0:59
  Speaker 1: of an effect really have when you consider where the
• 1:02
  Speaker 1: banking industry is going and a lot of the digital
• 1:06
  Speaker 1: assets that are associated with this just on the watch
• 1:09
  Speaker 1: list right here, XRP, Cardono, XLM HBAR. All of these
• 1:13
  Speaker 1: that had IS twenty two to two in their roadmap
• 1:17
  Speaker 1: and also within their integration had of course a pump
• 1:20
  Speaker 1: over the weekend a couple of points within them. There's
• 1:23
  Speaker 1: a couple of companies that we're tracking. One is ACI Worldwide,
• 1:26
  Speaker 1: I'll show them in a second, and also Braid Technologies,
• 1:28
  Speaker 1: both of these of which have a integrated component here,
• 1:32
  Speaker 1: of course is ACI and Swift. One thing you'll notice
• 1:35
  Speaker 1: here I've got highlighted right there is how Ripple is
• 1:38
  Speaker 1: integrated into this around where ACI and Swift are going
• 1:42
  Speaker 1: to start to integrate around these new standards. Not only that,
• 1:46
  Speaker 1: then you've got Braid. This of course is very heavily
• 1:48
  Speaker 1: related and tied to ethereum SOUM XRP both on the
• 1:53
  Speaker 1: front and center within this. I've got a clip here
• 1:55
  Speaker 1: before I bring my guest on today, and this is
• 1:58
  Speaker 1: Caitlin Long talking about what kind of impact this is
• 2:01
  Speaker 1: going to have. Take a look.
• 2:02
  Speaker 2: The vast majority of corporate payments go through fedwire. Your
• 2:06
  Speaker 2: payroll will typically go through ACCH. That's one hundred percent banks.
• 2:10
  Speaker 2: There are no FinTechs that have access to that. When
• 2:12
  Speaker 2: City put out a an optimistic forecast that's stable coins,
• 2:16
  Speaker 2: which are about two hundred billion now will be at
• 2:19
  Speaker 2: three point seven trillion by twenty thirty, I said, that's
• 2:22
  Speaker 2: laughably low. Fedwire right now is processing one point one
• 2:26
  Speaker 2: quadrillion dollars in payments, so three point seven trillion is
• 2:29
  Speaker 2: nothing compared to that. ACH is about eighty seven trillion,
• 2:34
  Speaker 2: And the biggest ACCH providers are JP Morgan and Wells Fargo.
• 2:38
  Speaker 2: They clear more than half. They have more than a
• 2:40
  Speaker 2: one hundred times markup on those. Okay, so no wonder
• 2:43
  Speaker 2: why JP Morgan is suddenly flipping and embracing it. And
• 2:45
  Speaker 2: then the cross border piece is also huge. I think
• 2:48
  Speaker 2: it's around two hundred and sixty trillion. Three point seven
• 2:51
  Speaker 2: trillion is a drop in the bucket. We're going to
• 2:53
  Speaker 2: be way above that.
• 2:54
  Speaker 3: I think, yeah, these are extraordinary numbers.
• 2:56
  Speaker 1: Maybe this is way underreported right now in terms of
• 2:59
  Speaker 1: what the capacity is going to have, So we thought
• 3:02
  Speaker 1: let's bring on some experts. This, of course is Stephen mcclerk,
• 3:04
  Speaker 1: who is the CEO of Canary Capital joining us today.
• 3:07
  Speaker 3: How are you, Steven, Hey, very good, Thanks for having me.
• 3:09
  Speaker 1: Yeah, good to see you again. First of all, let's
• 3:12
  Speaker 1: get into a couple of details. I want to jump
• 3:14
  Speaker 1: on to what's happening this week in alignment with ISO
• 3:19
  Speaker 1: twenty oh two to two, and that is Crypto Week.
• 3:22
  Speaker 1: Crypto Week is happening. We've got Clarity Act coming in,
• 3:24
  Speaker 1: the Anti CBDC Surveillance State Act. Also Genius most likely
• 3:29
  Speaker 1: going to take place. When you look at that right now,
• 3:31
  Speaker 1: is this a coincidence that all of this is coming
• 3:34
  Speaker 1: together at the same time. I'm just wondering.
• 3:37
  Speaker 3: I don't think it's too much of a coincidence. There
• 3:40
  Speaker 3: really is a push by the current administration to get
• 3:44
  Speaker 3: all this wrapped up by August. And in addition to
• 3:47
  Speaker 3: what you're seeing right there, there's also and this has
• 3:51
  Speaker 3: been widely reported. I'm not sharing anything that secret right
• 3:54
  Speaker 3: but now it's being widely reported that there's a framework
• 3:57
  Speaker 3: coming out for crypto within exchanges public exchanges, meaning a
• 4:05
  Speaker 3: generic listing standard that the SEC has been working on
• 4:09
  Speaker 3: for the last since January that will decide which cryptocurrencies
• 4:16
  Speaker 3: can go into an ETF or not. So okay, that's
• 4:19
  Speaker 3: again been widely reported and I'm sure that that's being
• 4:21
  Speaker 3: worked on this week as well, so you also have that.
• 4:24
  Speaker 3: So there is a lot happening right now. So we're
• 4:27
  Speaker 3: very excited about the progress here.
• 4:29
  Speaker 1: JP Morgan has been on record around this because talking
• 4:33
  Speaker 1: about the use case of fedwire, I want to play
• 4:35
  Speaker 1: a clip for you, Steven and get your opinion. Let's
• 4:37
  Speaker 1: take a look.
• 4:38
  Speaker 4: So fintech stocs sold off Friday after Bloomberg report the
• 4:41
  Speaker 4: JP Morgan plans to start charging for access now issue
• 4:44
  Speaker 4: here is the data that fintech's used to link customer
• 4:47
  Speaker 4: bank accounts to apps like Venmo, Coinbase, and Robinhood. PayPal
• 4:52
  Speaker 4: led the drop down more than five and a half percent,
• 4:54
  Speaker 4: with a firm five Serve and Chime also sliding. Robinhood
• 4:58
  Speaker 4: was the least effected, still holding up that access has
• 5:00
  Speaker 4: typically been free through aggregators like Plaid and MX, which
• 5:04
  Speaker 4: connect banks to FinTechs, but JP Morgan is reportedly introducing
• 5:07
  Speaker 4: new fees that could be passed from aggregators to FinTechs
• 5:11
  Speaker 4: and potentially consumers, as the charges may wipe out the
• 5:14
  Speaker 4: revenue from a single transaction, clearly rattling investors today.
• 5:18
  Speaker 5: So this isn't Plaid charging. This is JP Morgan, a
• 5:21
  Speaker 5: major bank customers, saying that it's got the heft to
• 5:25
  Speaker 5: say okay, now everybody, you've got to pay up and
• 5:28
  Speaker 5: figure out how the cost get passed around.
• 5:29
  Speaker 4: And in the case of these FinTechs, they rely on
• 5:31
  Speaker 4: those thin margins to offer free or very low cost
• 5:34
  Speaker 4: services and even the slightest disruption can affect have major
• 5:38
  Speaker 4: ripple effects across their business model.
• 5:40
  Speaker 1: All right, so this starts to play into two major areas. Obviously,
• 5:44
  Speaker 1: ripple all tied to how this is going to connect
• 5:47
  Speaker 1: for larger funds. But what they're talking about there is
• 5:50
  Speaker 1: more of the banking services, you know, interconnect Robinhood, who
• 5:53
  Speaker 1: they mentioned. Interestingly enough, Robinhood announced their Robinhood banking program
• 5:59
  Speaker 1: here just recently, so vlad has got this in as roadmap.
• 6:03
  Speaker 1: Maybe that's why Robinhood is not being affected as much.
• 6:07
  Speaker 1: Do you think we're in a position right now where
• 6:10
  Speaker 1: we're going to start to see Robinhood just not scared
• 6:12
  Speaker 1: of what's happening with JP Morgan.
• 6:14
  Speaker 3: I don't think robin Hood scared at all. Some of
• 6:16
  Speaker 3: the things that robin Hood's doing in addition to going
• 6:19
  Speaker 3: after their own banking charter as well as obviously a
• 6:22
  Speaker 3: big trading platform for equities and cryptocurrencies is they've also
• 6:27
  Speaker 3: allowed for staking for proof of state protocols, so that's
• 6:33
  Speaker 3: something that's definitely going to put them ahead of the
• 6:36
  Speaker 3: game when it comes to other platforms. They're not the
• 6:39
  Speaker 3: only one either, So you've got you have Fidelity obviously
• 6:44
  Speaker 3: working on innovative tools. You have Schwab that's looking at
• 6:48
  Speaker 3: adding cryptocurrencies directly on their platform. And I think we
• 6:53
  Speaker 3: want to talk a little bit more about payment rails,
• 6:55
  Speaker 3: which I think is way more important, but these companies
• 6:59
  Speaker 3: aren't as afraid. And JP Morgan's been working on their
• 7:01
  Speaker 3: block team for their own blockchain for years. So you've
• 7:04
  Speaker 3: got JP Morgan, Schwab, Robinhood clearly in the driving seat
• 7:07
  Speaker 3: right now. But you also have firms like Ripple and
• 7:12
  Speaker 3: Interstellar and some of these others that have been building
• 7:15
  Speaker 3: these rails for years, and we'll probably see a lot
• 7:18
  Speaker 3: of traffic move to those rails.
• 7:20
  Speaker 1: Yeah, well, I think the numbers are going to be significant.
• 7:22
  Speaker 1: Another area that we're watching, Steven, is the point of
• 7:26
  Speaker 1: sale systems that are out there. JP Morgan launched this
• 7:28
  Speaker 1: not too long ago. This was something we reported on
• 7:31
  Speaker 1: this potentially kind of circumvinced you know, the traditional merchant
• 7:34
  Speaker 1: services out there. That's an actually JP Morgan PINpad and
• 7:38
  Speaker 1: paypad that you'd be able to use. Now when you
• 7:41
  Speaker 1: look at that, there's a couple of other companies that
• 7:44
  Speaker 1: have started to go kind of in that direction, and
• 7:47
  Speaker 1: one of them has been Zeno and Zeno pay of
• 7:49
  Speaker 1: course tied to Ripple. This will be another one that
• 7:52
  Speaker 1: could play into this when you look at how all
• 7:55
  Speaker 1: of this is starting to integrate where Ripple has on
• 7:58
  Speaker 1: potentially the payment rails. Do you think Ripple is setting
• 8:01
  Speaker 1: up for maybe a point of sale play similar to
• 8:03
  Speaker 1: what JP Morgan has done.
• 8:05
  Speaker 3: Yeah, I do. I do think that they're driving towards that.
• 8:08
  Speaker 3: And there's going to be a race on the hardware
• 8:10
  Speaker 3: side as well. Right, so, the point of Celle systems
• 8:14
  Speaker 3: are going to be an important integral piece and that's
• 8:17
  Speaker 3: going to be there's going to be a major race
• 8:19
  Speaker 3: to get those in to a lot of retailers. Know,
• 8:25
  Speaker 3: you already have the credit card scanning software. Now you
• 8:29
  Speaker 3: need software that enables you to scan using other protocols
• 8:34
  Speaker 3: and chains.
• 8:35
  Speaker 1: Visa MasterCard has kind of controlled that for a while,
• 8:37
  Speaker 1: so we'll see how that plays into this going forward. Obviously,
• 8:41
  Speaker 1: JP Morgan trying to make a move there, and I
• 8:43
  Speaker 1: think you're right, we are going to see maybe a
• 8:45
  Speaker 1: crypto company that will break rank here and get accelerated
• 8:49
  Speaker 1: on this pretty quickly.
• 8:50
  Speaker 3: Could be Ripple. We'll see.
• 8:51
  Speaker 1: Let's talk about XRP et F filings with the SEC. Obviously,
• 8:54
  Speaker 1: you guys are at the top of the list right
• 8:56
  Speaker 1: there behind bit Wise, and it's looking pretty good. But
• 9:00
  Speaker 1: the question is is when when do you think we're
• 9:03
  Speaker 1: going to see these things take place? Do you how
• 9:05
  Speaker 1: do you feel like the SEC is pretty much loosened
• 9:07
  Speaker 1: up enough to where we're going to see one of
• 9:09
  Speaker 1: these one of these get launched.
• 9:10
  Speaker 3: Well, as I as I mentioned a little bit earlier,
• 9:12
  Speaker 3: there is a move right now for the framework for
• 9:17
  Speaker 3: which ETFs will be allowed in or which tokens will
• 9:21
  Speaker 3: be allowed in an ETF and which ones aren't. I
• 9:24
  Speaker 3: firmly believe that Ripple, uh you know, is paving the
• 9:30
  Speaker 3: way on a lot of a lot of other different
• 9:32
  Speaker 3: things here, so you know, and obviously the connection with XRP,
• 9:36
  Speaker 3: so I believe that XRP will be one of those
• 9:39
  Speaker 3: tokens that will be in an ETF when all of
• 9:42
  Speaker 3: this launches. There's a very clear court precedent now that's established.
• 9:48
  Speaker 3: RP is not a security. Uh, it will easily be
• 9:52
  Speaker 3: moved into a thirty three X fund. And I actually
• 9:56
  Speaker 3: believe out of all the ones that are pending, uh,
• 9:59
  Speaker 3: you know, we already have Bitcoin, we already have Ethereum,
• 10:02
  Speaker 3: But out of the pending ETFs, I think XRP is
• 10:06
  Speaker 3: going to get the most traction.
• 10:08
  Speaker 1: And why do you think that? I mean, what do
• 10:11
  Speaker 1: you feel that institutional will understand what Ripple is up
• 10:16
  Speaker 1: to and that XRP is the driving fuel behind it,
• 10:19
  Speaker 1: much like where Ethereum is to you know, stable coins?
• 10:23
  Speaker 3: Yeah, I mean, and the two that I'm really looking
• 10:25
  Speaker 3: at because they're the most popular obviously are Solana and XRP.
• 10:29
  Speaker 3: So I do believe there's going to be a lot
• 10:31
  Speaker 3: more of a retail push into Solana, But those people
• 10:35
  Speaker 3: that are buying Solana at the retail level are more
• 10:38
  Speaker 3: easily buying them on crypto exchanges. I don't know there's
• 10:43
  Speaker 3: going to be as many as much flow on that
• 10:45
  Speaker 3: side of things, whereas on XRP, it's really rails for
• 10:49
  Speaker 3: financial services. So I believe that there's going to be
• 10:52
  Speaker 3: a lot more of a financial advisor, a institutional type
• 10:57
  Speaker 3: push here. So maybe out of the gate it won't
• 10:59
  Speaker 3: be as popular as ALNA, but as time goes on,
• 11:02
  Speaker 3: I do believe that XRP will probably have more AUM
• 11:06
  Speaker 3: than even ethereum.
• 11:08
  Speaker 1: Wo Okay, now we're talking. That's a big that's a
• 11:11
  Speaker 1: big statement. Thinking of that, you have to look at
• 11:13
  Speaker 1: goldbugs because I think goldbugs understand this and how to
• 11:17
  Speaker 1: go out and buy ets. They've been doing it for
• 11:18
  Speaker 1: a long time. This was Ainsley Bullion, and the reason
• 11:21
  Speaker 1: I wanted to bring this website up is their analyst
• 11:24
  Speaker 1: made a statement that was pretty striking to me in
• 11:28
  Speaker 1: comparing how this could apply to gold investors. Let me
• 11:32
  Speaker 1: play a clip for you.
• 11:33
  Speaker 6: Out of the blue ripple decides they want to go
• 11:36
  Speaker 6: fly for a FED master account, and I'm just like
• 11:39
  Speaker 6: blowing away. It is a massive, massive move that is
• 11:43
  Speaker 6: directly linked to the Federal Reserve assets held on the
• 11:46
  Speaker 6: Federal Reserve balance sheets, a system whereby they could access
• 11:50
  Speaker 6: the FED window repose and so forth with settlement options
• 11:53
  Speaker 6: in FED now fedwire ah. But then it also taps
• 11:58
  Speaker 6: into all overseas liquidity needs and management. It's blowing my
• 12:02
  Speaker 6: mind how much this could really just create a whole
• 12:05
  Speaker 6: new infrastructure ripple. We're having meetings with the BIS, They've
• 12:09
  Speaker 6: had meetings with the IMF, the European Union, they are
• 12:12
  Speaker 6: all these big players. You've got the EVM, THEEUM Virtual
• 12:16
  Speaker 6: Machine EVM, side Chain, which just launched, taps into eighty blockchains.
• 12:20
  Speaker 6: They've got Wormhole, which taps into Solana, Flair, Axila, Cosmos ecosystem.
• 12:26
  Speaker 6: It just seems that that things are really starting to
• 12:28
  Speaker 6: line up to launch in a very major way, really
• 12:31
  Speaker 6: starting to get sorthing. If you can't tell, I'm getting
• 12:33
  Speaker 6: a little excited, all right.
• 12:36
  Speaker 1: So intriguing that you've got other ancillary markets that are
• 12:41
  Speaker 1: starting to recognize these things, and they understand how money moves,
• 12:44
  Speaker 1: They understand how money works. You look at ETFs in general,
• 12:47
  Speaker 1: I'm just looking at the AUM right now. On a
• 12:49
  Speaker 1: percentage of market cap, ethan about three percent are kind
• 12:52
  Speaker 1: of zooming on that, so you can see it a
• 12:54
  Speaker 1: little bit, but three percent versus bitcoin around five point
• 12:58
  Speaker 1: six percent on assets under management. Do you think we
• 13:01
  Speaker 1: could see x r P n ETH start to elevate
• 13:05
  Speaker 1: to that six percent in other words, double what we're
• 13:08
  Speaker 1: seeing right now in au M.
• 13:10
  Speaker 3: No, I really do and uh and and and again,
• 13:12
  Speaker 3: mainly it's because of uh, the understanding of what it
• 13:16
  Speaker 3: is as a financial rail, you know. And I'll be honest,
• 13:19
  Speaker 3: four years ago, I didn't think they had a chance.
• 13:22
  Speaker 3: Under the last administration. You know, there there was no
• 13:26
  Speaker 3: room for competition to fed Wire, And now there actually
• 13:31
  Speaker 3: is room for that. And we're probably going to see
• 13:34
  Speaker 3: a lot this week out of out of penning legislation.
• 13:38
  Speaker 3: But but but I do believe that, you know, the
• 13:42
  Speaker 3: world is wide open and there's going to be a
• 13:44
  Speaker 3: race here and uh and and I do believe that
• 13:47
  Speaker 3: Ripple is probably best positioned to take advantage of that
• 13:51
  Speaker 3: race for financial wire. So we're probably in the other protocol.
• 13:55
  Speaker 1: Interesting, Well, I think there's a couple of points that
• 13:58
  Speaker 1: you're making. Is not only the market leader and dominance position,
• 14:02
  Speaker 1: but I think a lot of people forget just how
• 14:04
  Speaker 1: many partnerships Ripple has done over the last several years
• 14:07
  Speaker 1: because they've been while all this litigation was. First of all,
• 14:10
  Speaker 1: kudos to Ripple. All that litigation was kind of keeping
• 14:13
  Speaker 1: the home front at bay while they were doing partnerships
• 14:16
  Speaker 1: around the world. You know, they mentioned bis etc. That
• 14:20
  Speaker 1: really are impacting this. All of this could leave into
• 14:23
  Speaker 1: or lead into all coins and the all coin market.
• 14:27
  Speaker 1: I was looking at you guys's weekly market review. Do
• 14:30
  Speaker 1: you think we're going to see an all coin market
• 14:33
  Speaker 1: and season like what we've seen in the past, or
• 14:36
  Speaker 1: is this one going to be completely different like anyone
• 14:38
  Speaker 1: we've seen before.
• 14:39
  Speaker 3: Yeah. Look, I was just on a panel a couple
• 14:42
  Speaker 3: of days ago with two other guys, and we were
• 14:45
  Speaker 3: all over the place. There's a big contingency that believes
• 14:47
  Speaker 3: that all coins have seen their rally. January was the
• 14:52
  Speaker 3: top and there will be no other rally this year.
• 14:54
  Speaker 3: It's done. And then there's a big contingency that believes
• 14:56
  Speaker 3: that there will be a massive rally in all coins,
• 15:00
  Speaker 3: mainly having to do with things like, you know, looking
• 15:03
  Speaker 3: at a theorem for instance, you know, the yields on
• 15:06
  Speaker 3: ethereum is at all time lows, but the queue to
• 15:09
  Speaker 3: get into validators that is all time high. The number
• 15:12
  Speaker 3: of tokens on validators is at all time high. People
• 15:15
  Speaker 3: that are staking as at all time high. So usually
• 15:17
  Speaker 3: when you have a lot of long term staking activity
• 15:21
  Speaker 3: across protocols like that, then all coins rally because you
• 15:25
  Speaker 3: can't move it around, you can't trade it, so there's
• 15:27
  Speaker 3: there's really only one direction that up. I'm a little
• 15:30
  Speaker 3: bit more neutral. I'm in the camp of Bitcoin will
• 15:33
  Speaker 3: continue to rally up to about probably one forty, and
• 15:36
  Speaker 3: all coins will follow it. Some will outperform, some won't.
• 15:41
  Speaker 3: There will probably you know, like Salon is one where
• 15:43
  Speaker 3: there's a lot of you know, I know we've got
• 15:45
  Speaker 3: nothing against Salon, and but there's there's a lot of interest.
• 15:48
  Speaker 3: But I don't believe it will hit a new all
• 15:50
  Speaker 3: time high this year. I don almost theoryum hit a
• 15:53
  Speaker 3: new all time high this year. I mean, it hasn't
• 15:54
  Speaker 3: hit an all time high in four years. It's going to
• 15:57
  Speaker 3: be the newer tokens, like you know, things like sue
• 16:01
  Speaker 3: and injective ax al are those are the ones that
• 16:05
  Speaker 3: I expect to hit all time highs. You know, think
• 16:06
  Speaker 3: you know, the newer technology that are building really interesting things.
• 16:09
  Speaker 3: Say is another good one. Those those protocols will compete
• 16:15
  Speaker 3: in likelihood new all time high for some of the
• 16:17
  Speaker 3: bigger ones won't. I don't know where XRP price is
• 16:20
  Speaker 3: going just given where you know where the current legislation is.
• 16:25
  Speaker 3: But I do expect it to hit all the time
• 16:27
  Speaker 3: high for the year at least, and so it's going
• 16:29
  Speaker 3: to be a mixed bag. But I'm in the camp
• 16:32
  Speaker 3: of neutral. You know, cult will follow point and by
• 16:35
  Speaker 3: the end of the year we'll probably see you know,
• 16:38
  Speaker 3: peaks and maybe a trough next year.
• 16:40
  Speaker 1: Yeah, for sure. This is a question that's being asked
• 16:43
  Speaker 1: around not only Bitcoin treasury companies, Ethereum treasury companies and
• 16:48
  Speaker 1: now XRP potentially treasury companies that could play into this,
• 16:52
  Speaker 1: and that is do you own the core asset and
• 16:55
  Speaker 1: look at those yields or do you own the ETF
• 16:58
  Speaker 1: or when I say, the core assets through these public
• 17:02
  Speaker 1: A traded companies and look at dividends there versus yields
• 17:06
  Speaker 1: coming in from the ETF side of things. What do
• 17:08
  Speaker 1: you think is going to be the model here in
• 17:11
  Speaker 1: terms of who wins? It'd be like comparing ibit to Master.
• 17:14
  Speaker 3: Yeah, I mean, look, I think it's going to be
• 17:16
  Speaker 3: mixed because if you want a pure play. Let's see,
• 17:20
  Speaker 3: you're a financial advisor and you're buying something for your
• 17:23
  Speaker 3: clients and they you want a pure play for them
• 17:26
  Speaker 3: that you can control, then you're going to buy the
• 17:29
  Speaker 3: ETF because that's exactly what it is. It's a pure
• 17:32
  Speaker 3: play token. You know exactly what it is. There's no
• 17:35
  Speaker 3: operating company in there, you know what your fee is.
• 17:38
  Speaker 3: Everything is very generic, and everything's very simple, and you
• 17:41
  Speaker 3: know exactly what you're getting. With a lot of the
• 17:44
  Speaker 3: treasury companies. I actually think it's a great idea that
• 17:47
  Speaker 3: there's a lot of treasury companies out there, because I mean, look,
• 17:50
  Speaker 3: I used to invest in companies that held different foreign currency.
• 17:54
  Speaker 3: Right now, a lot of cryptocurrencies are treated like that
• 17:57
  Speaker 3: foreign currency. You know, I'm interested in some of these
• 18:00
  Speaker 3: treasury plays. Some I'm not. Some I am, and people
• 18:04
  Speaker 3: are going to get and people are going to pursue
• 18:07
  Speaker 3: that as well, because they see it more of a
• 18:09
  Speaker 3: lever play without a lot of the inherent levered problems.
• 18:15
  Speaker 3: So we're definitely going to see a mix of investors
• 18:20
  Speaker 3: that want ETFs and then some that want treasury, some
• 18:22
  Speaker 3: that want both. I frankly want both right now, but
• 18:26
  Speaker 3: I think in the long run, you know, your financial
• 18:28
  Speaker 3: advisor is going to put you in a pure.
• 18:30
  Speaker 1: ETF steven you guys are rolling out or potentially rolling
• 18:33
  Speaker 1: out steak dtfs. Do you think this is coming fast?
• 18:36
  Speaker 1: What's your opinion on steak dtfs.
• 18:39
  Speaker 3: I think that it's really the only way to go.
• 18:41
  Speaker 3: I think about it in the same terms of you know,
• 18:43
  Speaker 3: I created a lot of fixed income ETFs in the
• 18:46
  Speaker 3: twenty tens, things like bullet Shairs, which is now a
• 18:50
  Speaker 3: big suite that investco has, And yield is extremely important
• 18:56
  Speaker 3: in etf It's extremely important, and closed in funds extremely
• 18:59
  Speaker 3: important mutual funds. If there's a yield that's available and
• 19:02
  Speaker 3: you're not getting it, then it's probably something you don't
• 19:05
  Speaker 3: want to buy. But if you are getting it, then
• 19:08
  Speaker 3: it's a It is a diversification to your income, whether
• 19:11
  Speaker 3: it's from a from from from a bond, or from
• 19:14
  Speaker 3: a cryptocurrency that has a proof of steak. So allowing
• 19:18
  Speaker 3: for the SEC to allow staking, and when I say staking,
• 19:24
  Speaker 3: I specifically mean too validators on the network, not I staking,
• 19:29
  Speaker 3: then it's it's an integral part of that token. And
• 19:32
  Speaker 3: I think it's very important that the SEC allows it,
• 19:34
  Speaker 3: number one, and that we offer it and offer the
• 19:37
  Speaker 3: clients as much yield as we can from those products.
• 19:41
  Speaker 1: Do you think they'll understand it? I was looking at
• 19:43
  Speaker 1: a tweet by Kathy Woods says I can't I can't
• 19:46
  Speaker 1: say I understand all the details here. If there they're
• 19:48
  Speaker 1: talking about the proposition for scalability and other things around
• 19:52
  Speaker 1: the use case of crypto and digital assets in general.
• 19:57
  Speaker 1: Do you think and I don't want to say boomer,
• 19:59
  Speaker 1: but I'm going to just say more advanced institutional investors
• 20:03
  Speaker 1: that control a lot of wealth, do you think they're
• 20:06
  Speaker 1: going to start to really understand? Do you think they'll
• 20:08
  Speaker 1: learn quickly? And we're going to see kind of a
• 20:10
  Speaker 1: flood of assets and what do we have seventy trillion
• 20:13
  Speaker 1: setting in money market funds right now. That's a lot
• 20:16
  Speaker 1: of liquid assets just looking for a place to go.
• 20:18
  Speaker 3: Yeah. So one of the things that we do is
• 20:20
  Speaker 3: we offer private trust and half for years that offers
• 20:24
  Speaker 3: a cryptocurrency that then stakes to a validator and offers yield.
• 20:29
  Speaker 3: And a lot of professional investors understand the concept of
• 20:34
  Speaker 3: getting the healed out of something. I don't think a
• 20:37
  Speaker 3: lot of them understand exactly where that held is coming from.
• 20:41
  Speaker 3: Right So there's a massive amount of education that needs
• 20:44
  Speaker 3: to be done. And the way that I explain it
• 20:46
  Speaker 3: to people is like, look, you know you buy JP
• 20:49
  Speaker 3: Morgan stock, you understand what JP Morgan does. They are
• 20:52
  Speaker 3: you know, I mean, they're a multifaceted organization, but they're
• 20:55
  Speaker 3: a bank. They earn interest and they pay some of
• 20:58
  Speaker 3: that interest out to you in a dividend. Know that
• 21:00
  Speaker 3: it's very simple, right. They charge things like transaction fees
• 21:03
  Speaker 3: and other types of fees on their deposits and just
• 21:07
  Speaker 3: very simplistic terms and of course give you the give
• 21:10
  Speaker 3: you the rest. These are networks for moving things like
• 21:13
  Speaker 3: capital and assets. And when they move these assets, these
• 21:19
  Speaker 3: financial assets around, you are earning a yield simply by
• 21:24
  Speaker 3: helping facilitate the network and those fees that come in,
• 21:28
  Speaker 3: You're you're getting the benefit of that because there are
• 21:30
  Speaker 3: fees that come off the network and we're supporting the
• 21:32
  Speaker 3: network by by dolinating those, uh those transactions. Yeah.
• 21:37
  Speaker 1: Well, and I think you're you're hitting on some very
• 21:39
  Speaker 1: key points when you think about how people are going
• 21:42
  Speaker 1: to understand digital assets in general. We're in a very
• 21:46
  Speaker 1: early state right now. Obviously, just a handful of ETFs
• 21:49
  Speaker 1: out there that are effectively launched, and really I think
• 21:52
  Speaker 1: taking on obviously I buy bits performance has been just
• 21:55
  Speaker 1: you know stellar. Now Blackrock kind of completely understands there.
• 22:00
  Speaker 1: You have a lot of things happening with the banks
• 22:02
  Speaker 1: who are trying to play catch up as well. So
• 22:04
  Speaker 1: I think we're going to see a lot of that
• 22:05
  Speaker 1: pushed in. I want to get to the last point here,
• 22:08
  Speaker 1: and that is international blind spots, because as we watch
• 22:12
  Speaker 1: the rest of the world start to move into digital assets,
• 22:16
  Speaker 1: there's a handful of places that are hot spots. One,
• 22:19
  Speaker 1: of course, South Korea most preferred token over there, This
• 22:23
  Speaker 1: is a head of ether is XRP, and if you
• 22:27
  Speaker 1: think about that and also what they're doing in terms
• 22:30
  Speaker 1: of maybe other countries that are starting to roll into
• 22:34
  Speaker 1: this area of preferential treatment around certain digital assets. Is
• 22:38
  Speaker 1: there any area that you feel are maybe here in
• 22:41
  Speaker 1: the United States we're just not paying attention to what's
• 22:44
  Speaker 1: happening globally and internationally.
• 22:47
  Speaker 3: Yeah. Sure. I mean there's really five countries that I've
• 22:50
  Speaker 3: paid attention to ever since I've been in digital assets
• 22:52
  Speaker 3: because they're major drivers and a lot of people don't
• 22:55
  Speaker 3: think about it, but South Korea is probably the biggest
• 22:59
  Speaker 3: driver of price and interest in cryptocurrencies, even more so
• 23:04
  Speaker 3: than the US.
• 23:05
  Speaker 1: It often interesting, okay, if.
• 23:08
  Speaker 3: You look at the trading pairs, for instance, dollars and
• 23:11
  Speaker 3: wands versus cryptocurrencies at certain points there'd be more trading
• 23:16
  Speaker 3: pair volume against the wand than the dollar. And that's
• 23:22
  Speaker 3: I mean, we actually hit that point, I believe, for
• 23:25
  Speaker 3: one quarter last year, and then most of twenty seventeen,
• 23:29
  Speaker 3: most of twenty eighteen it was Korea. China was you know,
• 23:33
  Speaker 3: China's on and off. They were pretty big in twenty
• 23:36
  Speaker 3: seventeen and twenty eighteen, and then cryptocurrencies were banned. Japan's interesting,
• 23:41
  Speaker 3: Singapore is interesting, and of course UAE is interesting. So
• 23:45
  Speaker 3: actually a year ago I went to Korea blockchain week
• 23:49
  Speaker 3: before we even launched Canary, and it was just you know,
• 23:51
  Speaker 3: kind of poking around seeing what was going on. And
• 23:53
  Speaker 3: it's actually the reason why we launched Canary was the
• 23:56
  Speaker 3: understanding I got visiting a blockchain week and then and
• 24:01
  Speaker 3: then of course visiting Japan a week before that, and
• 24:06
  Speaker 3: and it really showed me which cryptocurrencies were popular, just
• 24:12
  Speaker 3: by just by going through the different side events of
• 24:14
  Speaker 3: talking to people. And of course it's the reason why
• 24:17
  Speaker 3: we filed for the you know, or one of the
• 24:19
  Speaker 3: reasons why we filed for the XRP E T offic
• 24:21
  Speaker 3: because it was so popular, as was hbar As was
• 24:25
  Speaker 3: a handful of other tokens that people weren't really thinking
• 24:28
  Speaker 3: about in the US. So it definitely drives our decision
• 24:31
  Speaker 3: on what's going on in other countries.
• 24:33
  Speaker 1: And I think your point being is that there are
• 24:36
  Speaker 1: certain areas of the of the globe right now that
• 24:39
  Speaker 1: are starting to move much more aggressively than the United States,
• 24:43
  Speaker 1: even though I feel like this week maybe the pivotal
• 24:46
  Speaker 1: time in which maybe things shift quickly. We'll see, Steven.
• 24:51
  Speaker 1: So we'll definitely have you back after all of this,
• 24:53
  Speaker 1: because I imagine there's gonna be some fireworks. But thanks
• 24:55
  Speaker 1: so much for coming in today. We appreciate it.
• 24:57
  Speaker 3: Hey, thanks for having me, Paul.
• 24:59
  Speaker 1: You bet our all right? Excellent, you guys are. If
• 25:01
  Speaker 1: you're not in the Diamond circle, make sure and jump
• 25:03
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• 25:05
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• 25:08
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• 25:10
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• 25:12
  Speaker 1: on the Paul Baron Show.