Latest / The Paul Barron Crypto Show / Solana Tokenized Stocks vs TradFiš„xStocks INTERVIEW
Transcript
- 0:00Speaker 1: Today we're going to dive into token is stocks and
- 0:02Speaker 1: how this could be changing the entire financial system. You
- 0:05Speaker 1: don't want to miss it. Let's just jump in real quick.
- 0:08Speaker 2: I do have a.
- 0:08Speaker 1: Guest today and it is the CEO and co founder
- 0:12Speaker 1: of backed Finance. You guys will know as x stops.
- 0:15Speaker 1: So welcome in Adam. How are you.
- 0:17Speaker 2: I'm good, I'm good. Thank you so much for having me.
- 0:19Speaker 1: Obviously there is a big, i won't say argument, but
- 0:23Speaker 1: consideration between traditional finance and what's going on with obviously
- 0:27Speaker 1: within X stocks and what we'll see around token is stocks.
- 0:31Speaker 1: I want to go to a clip real quick, play
- 0:33Speaker 1: this for you and then get your opinion of what
- 0:36Speaker 1: Ken Griffin had to say. Take a look, Ken, talk to.
- 0:38Speaker 2: Me about the tokenization push. I mean, I'm going to
- 0:46Speaker 2: tell you what I say.
- 0:47Speaker 3: What a great opportunity for shysters. Let's find a new
- 0:53Speaker 3: way for retail America to just get absolutely host. The
- 0:56Speaker 3: US securities market is extraordinarily efficient. I love the members
- 1:01Speaker 3: of the tokenization community. Oh, it's so expensive to trade today.
- 1:05Speaker 3: I don't even know what my annual DTCC fees are.
- 1:08Speaker 3: There so low, great transparency in our companies. There's been
- 1:11Speaker 3: very little corporate fraud in the United States, not just
- 1:15Speaker 3: corporate profit, but consumer value created by Apple is stunning.
- 1:20Speaker 3: That is when a capitalist system is working for citizens,
- 1:25Speaker 3: and tokenization is not part of that story.
- 1:27Speaker 1: Okay, so I'm not going to respond to that. I'm
- 1:29Speaker 1: gonna let you Adam respond to that real quickly. What
- 1:32Speaker 1: do you think the kids kid's statement there?
- 1:35Speaker 4: You know, I don't want to clash too much, but
- 1:37Speaker 4: I will say that, first, the world is not just
- 1:40Speaker 4: the US.
- 1:41Speaker 2: Okay.
- 1:42Speaker 4: I know people in the US are very US centric,
- 1:45Speaker 4: and I can appreciate that, and I understand that, of course,
- 1:48Speaker 4: but there are many people around the world today that
- 1:51Speaker 4: don't have good access to the market. And I think
- 1:54Speaker 4: this is the first and outmost important thing that we're doing,
- 1:58Speaker 4: to be honest, democratizing in a way kind of access
- 2:02Speaker 4: to a wealth accumulation. So that's something that I think,
- 2:07Speaker 4: you know, is not existing well today in the world,
- 2:11Speaker 4: and I don't think anyone can debate that now whether
- 2:15Speaker 4: or not the market itself also for institutionals and in
- 2:19Speaker 4: the US today can also be let's say more efficient
- 2:23Speaker 4: in a way. I think, yes, you know, it took
- 2:26Speaker 4: them forty years to go from t plus two to
- 2:28Speaker 4: T plus one, where.
- 2:29Speaker 2: In crypto we're doing atomic settlements.
- 2:32Speaker 4: So I actually see a lot of similarity between stable
- 2:36Speaker 4: coins and tokenized equities.
- 2:38Speaker 2: Stable Coin started.
- 2:39Speaker 4: As more of a crypt native thing and then went
- 2:43Speaker 4: more to accessibility to dollars around the world, and now
- 2:46Speaker 4: in a way it's coming back more of an infrastructure play,
- 2:50Speaker 4: even for companies like Stripe and Visa and master.
- 2:52Speaker 1: Cup, right exactly.
- 2:53Speaker 4: I think the same will happen when tokenize equities. You know,
- 2:56Speaker 4: I'm not saying that the current infrastructure today for the
- 3:00Speaker 4: average US retail is not good. You know, Robbin the
- 3:03Speaker 4: accounts work pretty well, you know, until they loon. We've
- 3:07Speaker 4: seen we've seen that also lately. But you know, I
- 3:10Speaker 4: think this is a very kind of US centric kind
- 3:13Speaker 4: of view. Tech Wise, you cannot argue that the current
- 3:17Speaker 4: infrastructure is as good as as scrypto rails.
- 3:21Speaker 2: You know, that's just a tape perspective.
- 3:22Speaker 1: Yeah, And you know, when you look at a lot
- 3:25Speaker 1: of these Wall Street types, it seems like whether it's
- 3:27Speaker 1: Ken Griffy, Jamie Diamond, you got to look even Larry Finger.
- 3:30Speaker 1: I mean, they're all talking their book and they all
- 3:33Speaker 1: have a lot to lose. For a transition in a
- 3:36Speaker 1: market that eventually is going to be and happen the
- 3:39Speaker 1: way that we think it is and that is going
- 3:41Speaker 1: to be coming in terms of token is securities and
- 3:44Speaker 1: what this might look like. If you look at your
- 3:46Speaker 1: overall transaction volume right now in xdox reaching now a billion,
- 3:51Speaker 1: do you think this is going to explode in the
- 3:54Speaker 1: near future or do you think this is going to
- 3:56Speaker 1: take time to grow?
- 3:58Speaker 4: Yeah, well that's say billion on and you can see
- 4:00Speaker 4: five billion on the left or plus plus tax again
- 4:04Speaker 4: going back to markets like stable coins and digital like
- 4:08Speaker 4: token aze, gold and others. This is creating new financial
- 4:11Speaker 4: primitives on chain. It's not going to whatever, fifty billion,
- 4:16Speaker 4: one hundred billion in three maths. Okay, that's not kind
- 4:19Speaker 4: of the kind of market it is. But we definitely
- 4:22Speaker 4: see the demand. We definitely secret the growth, We see
- 4:24Speaker 4: the excitement and the interest. We're building something that I
- 4:28Speaker 4: think is robust enough to grow into these numbers. And
- 4:32Speaker 4: you know, if you look back the time it took
- 4:34Speaker 4: to you know, for Teter, I think to go to
- 4:37Speaker 4: three million and then ten billion for sure. Yeah, it's
- 4:39Speaker 4: it's it's geometric growth, right, It takes you like a
- 4:42Speaker 4: certain time to go from one million to ten and
- 4:44Speaker 4: then from the same time to go from ten to
- 4:46Speaker 4: one hundred and then a billion and then to ten billion.
- 4:49Speaker 4: That's what I assume, and that's what I think you
- 4:51Speaker 4: know will happen in this market as well well.
- 4:53Speaker 1: And if you look at just the uptake that we've
- 4:55Speaker 1: seen with xtox obviously available on phantom, this has been
- 4:58Speaker 1: one of the biggest reasons now trading obviously within the
- 5:01Speaker 1: Salana ecosystem. We'll talk about that in a minute, because
- 5:05Speaker 1: that in itself I think has kind of created a
- 5:07Speaker 1: pretty big opportunity because it's still very early in terms
- 5:11Speaker 1: of how token is stocks are being done. But here's
- 5:14Speaker 1: the cool thing. I was looking at this right here.
- 5:16Speaker 1: You guys posted this out in terms of access by
- 5:20Speaker 1: bit seventy million users gate thirty million cracking. You can
- 5:23Speaker 1: kind of see the lineup here. It's not going to
- 5:26Speaker 1: be long before we start to see some pretty big
- 5:28Speaker 1: uptake on this for sure. Yeah, when you look at
- 5:31Speaker 1: Ken Griffin's position from a KYC standpoint versus a non
- 5:37Speaker 1: KYC standpoint, make the case for non KYC.
- 5:41Speaker 2: To be honest.
- 5:42Speaker 4: For me, I think permission assets are just not very interesting,
- 5:46Speaker 4: you know, I'm like kryptonative. I don't think stable coins
- 5:50Speaker 4: would have succeeded if they were KYC right, right, It's
- 5:53Speaker 4: just not It just doesn't work. It's much much harder
- 5:56Speaker 4: to grow, and it doesn't benefit from the inter probability
- 6:00Speaker 4: of crypto.
- 6:01Speaker 2: And I believe that the future is permissionless.
- 6:05Speaker 1: No doubt, permissionless is the way to go. I'm a
- 6:08Speaker 1: big believer that, you know, the non KOYC route will take.
- 6:11Speaker 1: The concern I have right now is this transition period
- 6:14Speaker 1: between old finance traditional finance and what this will be
- 6:19Speaker 1: in terms of next generation finance, which is where I
- 6:22Speaker 1: think we are right now, a little bit in the middle.
- 6:24Speaker 1: How long that will take is the real question mark.
- 6:27Speaker 1: If you look at token is stocks in general and
- 6:30Speaker 1: this will this will be a good question for you.
- 6:33Speaker 1: And if you compare right now, this is just showing
- 6:35Speaker 1: by platform right there, is it more important in terms
- 6:39Speaker 1: of total value or do you feel like it's more
- 6:43Speaker 1: important by active addresses the actual people that's out there.
- 6:48Speaker 1: This is showing that what do you think.
- 6:50Speaker 4: I can I can tell you that you know if
- 6:52Speaker 4: you go back to the give an analytics that we have before.
- 6:55Speaker 4: My most important kind of KPI is unique holders. That's
- 7:01Speaker 4: the most important thing. I think Exos just crossed thirty
- 7:04Speaker 4: four thousand unique holds. You know, you need people to
- 7:08Speaker 4: kind of engage with them and trust them, and you
- 7:10Speaker 4: need to create a network effect around them.
- 7:12Speaker 2: And that's you know, that takes.
- 7:14Speaker 4: Time for a big player, you know, like black Hawk,
- 7:17Speaker 4: or it doesn't matter right to create something with a
- 7:19Speaker 4: huge kind of am for a product. You know, for them,
- 7:23Speaker 4: a billion is nothing, right, so it doesn't really it
- 7:25Speaker 4: doesn't say anything. And you can have whatever one hundreds
- 7:30Speaker 4: of millions held by.
- 7:30Speaker 2: A single entity. We've seen this also early on.
- 7:33Speaker 4: You know, we've people have been talking about talking I
- 7:36Speaker 4: securities for a long time. We think we've seen banks
- 7:39Speaker 4: like something there in a way issue the debt or
- 7:42Speaker 4: bonds where you had basically one holder.
- 7:45Speaker 2: It went from one pocket to the other of the bank.
- 7:48Speaker 4: So it's not interesting, right, It's it's basically them just
- 7:53Speaker 4: saying that or doing some crypto kind of or blockchain experiments,
- 7:58Speaker 4: you know, and like to have their own kind of
- 8:01Speaker 4: crypto people or blockchain people and brag about it. But
- 8:03Speaker 4: in the end, if you really want to bring it
- 8:05Speaker 4: into the messes and create a.
- 8:07Speaker 2: Real product, that people actually use around the world.
- 8:10Speaker 1: Right, what do you think critical mass would be? I'm
- 8:13Speaker 1: looking at here at your total unique holders, as you
- 8:16Speaker 1: said right there, thirty four thousand. Where would critical mass
- 8:20Speaker 1: happen for you? Do you think it's one hundred thousand
- 8:22Speaker 1: users a quarter of a million? What do you think
- 8:24Speaker 1: that would be?
- 8:25Speaker 2: I would say in the hundreds of thousands. Yes, that's
- 8:28Speaker 2: kind of crettical mess. Indeed.
- 8:30Speaker 1: Yeah, do most people care about shareholder rights like what
- 8:35Speaker 1: you see in traditional finance or just pure and simple
- 8:38Speaker 1: price I.
- 8:39Speaker 4: Think most people care mostly about financial exposure. You know,
- 8:44Speaker 4: they care about things like dividends or other things, but
- 8:47Speaker 4: mostly financially like less people that I care about voting rights.
- 8:51Speaker 1: Let's see you just mentioned dividends. How does this work
- 8:54Speaker 1: with x stox with if you have dividends within a stock,
- 8:57Speaker 1: how does that play out?
- 8:58Speaker 2: Where does that go?
- 9:00Speaker 4: Actions is a very interesting kind of thing, right, because
- 9:04Speaker 4: you were bridging the old traditional finance into crypto and
- 9:08Speaker 4: these two just in many cases just doesn't it doesn't match. Right.
- 9:11Speaker 4: There are things that doesn't work the same tech wise
- 9:15Speaker 4: or or or the way that just uxys as people
- 9:19Speaker 4: expect things to work right and dividends.
- 9:21Speaker 2: I think it's one of them, although they are whatever.
- 9:23Speaker 4: Like at is something corporate actions that you can think of,
- 9:26Speaker 4: but dividends is probably the most important thing along with splits.
- 9:30Speaker 4: The way we choose is kind of very basing, similar
- 9:34Speaker 4: to an et F that is doing kind of accumulation
- 9:38Speaker 4: or drip I think they call it in the US. Basically,
- 9:41Speaker 4: when we receive and we buy more more shares, and
- 9:45Speaker 4: then we rebase the token so that people now have
- 9:48Speaker 4: more tokens I see.
- 9:50Speaker 1: Okay, so it's kind of bled into the system, which
- 9:52Speaker 1: creates kind of a better benefit for the user. Okay,
- 9:55Speaker 1: perfect correct.
- 9:56Speaker 4: Look, but the that is that we want to pass
- 9:58Speaker 4: the financial basically, you know, every financial value to the
- 10:03Speaker 4: end user.
- 10:04Speaker 1: That would be interesting because obviously there's some tax benefits
- 10:06Speaker 1: there in playing it that way. I'm also looking at
- 10:10Speaker 1: a comparison right here. This is just a reference to
- 10:12Speaker 1: a tweet you had accessible for the people. There's a
- 10:15Speaker 1: statement here complying for institutions. You look at that and
- 10:19Speaker 1: if you kind of compare this to say Onto or Securitize,
- 10:23Speaker 1: which would be the other platforms that are working more
- 10:26Speaker 1: on the institutional side of things. Is it more risky
- 10:29Speaker 1: than going that route. Or do you feel like xdox
- 10:32Speaker 1: is starting to create its own security itself.
- 10:35Speaker 4: I think we're you know, I think we're creating our
- 10:37Speaker 4: own brand, and I'm less to be honest in general,
- 10:41Speaker 4: I try less to look at what others are doing.
- 10:43Speaker 4: We understand how the product should look like and how
- 10:46Speaker 4: the market is expecting the product to behave, and also
- 10:51Speaker 4: what we think about regulatory and we've done you know,
- 10:53Speaker 4: we've been doing this for several years, and I think
- 10:56Speaker 4: we have good understanding of how regulation works, and we've
- 11:00Speaker 4: done I think the most extensive regulatory work in the
- 11:03Speaker 4: space by far. Our products are basically IFI two great
- 11:08Speaker 4: yere right, and we have a full perspectives like an
- 11:10Speaker 4: S one in the US for example, for our products,
- 11:13Speaker 4: we can stay behind this like it when.
- 11:16Speaker 1: You look at other chains out there. One here's two
- 11:20Speaker 1: Network first two in history talking about and this is
- 11:23Speaker 1: a reference to Apple and this is their first ever
- 11:27Speaker 1: synthetic stock purchase now on sweet Network, starting with Apple,
- 11:30Speaker 1: So Apple acts available over there. Do you think is
- 11:33Speaker 1: every chain going to have their Apple version of synthetic
- 11:38Speaker 1: stocks or do you think this is something eventually you
- 11:40Speaker 1: guys will look at cross chain, and.
- 11:42Speaker 4: We started the X stalks on Soana, which is great.
- 11:45Speaker 4: Has been absolutely amazing with the SOA Foundation and the
- 11:50Speaker 4: community around Soana, to be honest, and we're very happy
- 11:53Speaker 4: about this choice. And now we actually launched on a
- 11:57Speaker 4: feu and recently so the tokens are also on a
- 11:59Speaker 4: few and we're planning other other changes as well.
- 12:02Speaker 2: You know, I think there's going to.
- 12:03Speaker 4: Be basically what we're building a native bridge so that
- 12:07Speaker 4: you can go, you know, from chain to chain. So definitely,
- 12:10Speaker 4: I don't think it'll be you know, there's no DC
- 12:13Speaker 4: for each chain, right, there's one US DC and you
- 12:16Speaker 4: can basically move it.
- 12:17Speaker 2: That's that's how I see the.
- 12:19Speaker 1: Future well, and I think, you know, you have to
- 12:21Speaker 1: look at the opportunity here in terms of growth, which
- 12:24Speaker 1: is if this really starts to take off to the
- 12:27Speaker 1: scale that you're talking about, I think a lot of
- 12:29Speaker 1: these key chains are really going to be in a
- 12:31Speaker 1: position to start offering these which is only going to
- 12:34Speaker 1: expand token ised securities as a whole. Speaking of that robinhood,
- 12:39Speaker 1: once they launch tokenized stocks, how what happens to X
- 12:43Speaker 1: stocks at that time? What happens to token iszed securities
- 12:46Speaker 1: want a behemoth like Robinhood, who has a much different
- 12:50Speaker 1: you know, profile in terms of their investor than traditional
- 12:53Speaker 1: finance does. What happens after that?
- 12:56Speaker 4: Until now what we've seen, at least what I've seen,
- 12:59Speaker 4: the Robinhood product are not supposed to be permissionless, which
- 13:02Speaker 4: is I said, I think is less.
- 13:04Speaker 2: Interesting for the market or you know, maybe let me
- 13:07Speaker 2: rephrase that.
- 13:08Speaker 4: Maybe it's a different market, you know, Okay, but the
- 13:11Speaker 4: market that I see as a crypton eightyve, I think
- 13:15Speaker 4: the permission kind of approached that I believe robin Ude
- 13:18Speaker 4: is taking is I think is less interesting.
- 13:21Speaker 1: So just a different profile in terms of investors that
- 13:24Speaker 1: are going to be looking at that. So it's really
- 13:26Speaker 1: investors going after two different even though they might be
- 13:29Speaker 1: buying you know, traditional finance stocks over on Robinhood. The
- 13:32Speaker 1: question is whether or not they're going to leap into
- 13:34Speaker 1: the token I side of it. I'm looking here at
- 13:38Speaker 1: gold reaching an all time high four thousand. You guys
- 13:40Speaker 1: of course have gold axe available. What about silver? Any
- 13:44Speaker 1: plans for tokenizing silver with silver booming right now in
- 13:47Speaker 1: the market, Well, I.
- 13:50Speaker 4: Can tell you that we're doing another batch of products
- 13:52Speaker 4: right now, Okay, I cannot say if.
- 13:56Speaker 2: Silver is there, and well we'll have a new big bets.
- 14:00Speaker 1: All right, you're telling me silver's there, that's what you're saying, Adam, Adam,
- 14:06Speaker 1: here's my question. Tesla absolutely killing it. You know, why
- 14:10Speaker 1: is everybody holding Tesla XOC right here? Why do you
- 14:14Speaker 1: think this is such a popular one?
- 14:17Speaker 4: Well, I think you know, this is a very at
- 14:20Speaker 4: the moment, this is a very retail kind of you know,
- 14:22Speaker 4: yeah product, we know retail like test Line, we know
- 14:26Speaker 4: crypto retail like test Line in particular, So I cannot
- 14:30Speaker 4: say that I'm surprised to be honest, this is very
- 14:33Speaker 4: much what we expected. And you know, you can see
- 14:36Speaker 4: I think we're holding I think there's almost twenty five
- 14:39Speaker 4: million dollars of token eyes like Tesla test Lax, and
- 14:42Speaker 4: over ten thousand holders just for test Lax.
- 14:45Speaker 2: So I think remarkable.
- 14:47Speaker 1: Yeah, it is quite remarkable when you look at that.
- 14:50Speaker 1: And I think the opportunity to your point is that
- 14:52Speaker 1: you know that profile of investor matches up so perfectly
- 14:56Speaker 1: with the crypto retail profile that we're seeing. So I
- 14:59Speaker 1: tell I agree with you. Clarity Act could be right now,
- 15:05Speaker 1: very close to an approval if we get it through Congress.
- 15:08Speaker 1: How does that change what's happening for you guys. Do
- 15:11Speaker 1: we start to see a whole bunch of X stocks
- 15:14Speaker 1: starting to make it here into the US markets or
- 15:17Speaker 1: do you think this will just benefit what you guys
- 15:18Speaker 1: are doing.
- 15:19Speaker 4: You know, I think in general, you know, we've taken
- 15:22Speaker 4: for years, because of the previous administration that has been
- 15:25Speaker 4: very anti crypto, We've taken an approach that was in
- 15:29Speaker 4: a way kind of you know, stepping back from the US.
- 15:32Speaker 4: We've built on the top of European regulation that gave
- 15:35Speaker 4: clarity and kind of avoided US of.
- 15:40Speaker 2: Course clients altogether.
- 15:42Speaker 4: And you know now that with the new administration and
- 15:45Speaker 4: the very much more pro crypt to SEC, we're of
- 15:48Speaker 4: course engaging and we want to bring axtos to the US.
- 15:51Speaker 2: But you know, we've been very careful throughout the years.
- 15:55Speaker 4: We respect the regulation and we'll of course not do
- 15:58Speaker 4: anything before we have regulatory clouds, but we are we're
- 16:01Speaker 4: definitely engaged in that.
- 16:02Speaker 1: I like it, all right, So the future is bright.
- 16:05Speaker 1: Last question I have for you in terms of a
- 16:07Speaker 1: potential token and an air drop, could that be in
- 16:12Speaker 1: the future.
- 16:13Speaker 4: You know, at the moment, there is no kind of
- 16:15Speaker 4: plans for back to do. To do a token back
- 16:19Speaker 4: is kind of an equity company, which I think suits
- 16:23Speaker 4: the business quite well. You can you can do I
- 16:26Speaker 4: think other air drops of interesting things. So I think
- 16:31Speaker 4: you can do you can still use this mechanism maybe,
- 16:33Speaker 4: but at the moment there are no plans for an
- 16:36Speaker 4: air drop or for sorry for a token.
- 16:39Speaker 2: Well.
- 16:39Speaker 1: I like the idea is that maybe there are some
- 16:41Speaker 1: other mechanisms for air drops, because obviously, as we start
- 16:44Speaker 1: to see the user base grow, that kind of reward
- 16:47Speaker 1: does so well in this community, as you know, and
- 16:50Speaker 1: it does create into that huge community effort that really
- 16:55Speaker 1: starts to coalesce around something like x stox. So, hey, Adam,
- 16:58Speaker 1: this is great. We're going to contain. We need to
- 17:00Speaker 1: watch this because we believe this is a huge opportunity
- 17:03Speaker 1: for the industry. It's a huge opportunity for crypto worldwide.
- 17:05Speaker 1: I commend you for doing just that, making it more
- 17:10Speaker 1: of an available process of building wealth really around the world.
- 17:13Speaker 1: So thanks for coming in on the show today. We
- 17:15Speaker 1: appreciate it.
- 17:16Speaker 2: Thank you, Thank you so much for having me.
- 17:17Speaker 1: Are you guys make sure and get in on the
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- 17:22Speaker 1: you like these kind of shows, and you like us
- 17:24Speaker 1: to explore the broader base of crypto, let us know
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- 17:34Speaker 1: on x at Paul Baron. We'll catch you next time
- 17:36Speaker 1: right here on the Paul Baron Show.