Latest / The Paul Barron Crypto Show / Ondo About To Explode🚀Tokenized Stocks🔥CEO INTERVIEW Ian De Bode

Transcript

Ondo About To Explode🚀Tokenized Stocks🔥CEO INTERVIEW Ian De Bode · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Tokenization is everywhere. Today, We're going to be breaking down
• 0:03
  Speaker 1: what the market looks like. I think you guys will
• 0:05
  Speaker 1: love it. We're going to have ondo here on in
• 0:07
  Speaker 1: a moment, so stay tuned for that. And just a
• 0:10
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  Speaker 1: app today and try it for yourself. So let's jump
• 0:48
  Speaker 1: into it today. I want to lead off with a
• 0:50
  Speaker 1: clip before we bring our guest on. And if you
• 0:53
  Speaker 1: guys haven't been watching what's been going on in tokenized equities,
• 0:58
  Speaker 1: this is the show for you because it's going to
• 1:00
  Speaker 1: get into where the market could go. A lot of
• 1:03
  Speaker 1: the new players, how we'll see equities fair in this area.
• 1:07
  Speaker 1: And one of the big players, of course, has been
• 1:09
  Speaker 1: the DTCC. I want to start with this clip. Take
• 1:12
  Speaker 1: a look their CEO sounds like he's doing a little
• 1:16
  Speaker 1: bit of the Italian goodfellas. Take a look.
• 1:19
  Speaker 2: When the early conversations on blockchain focused on disintermediation, this
• 1:24
  Speaker 2: thinking was premature at best, and I'm being very polite
• 1:29
  Speaker 2: about how I say it.
• 1:30
  Speaker 1: The digital Highway.
• 1:31
  Speaker 2: Begins with us.
• 1:33
  Speaker 1: That's a fact.
• 1:34
  Speaker 2: DTCC will be your strategic partner.
• 1:37
  Speaker 3: You see the limits of what the current model offers,
• 1:40
  Speaker 3: the DTCC will operate, he said, twenty four to five.
• 1:45
  Speaker 1: All right, so the limits, as you guys know, twenty
• 1:47
  Speaker 1: four to five. One of the players that have been
• 1:51
  Speaker 1: out there in the market for some time has been Onto.
• 1:54
  Speaker 1: So we wanted to bring on Ian coming in from
• 1:58
  Speaker 1: Onto Finance.
• 1:58
  Speaker 3: How are you doing? Great, pleasure to be here.
• 2:03
  Speaker 1: Excellent. So we're going to get into a lot around
• 2:06
  Speaker 1: where this landscape is today. If you look at just
• 2:10
  Speaker 1: the current stock table, or at least the token is
• 2:14
  Speaker 1: stocks table right here, you can kind of see Onto
• 2:16
  Speaker 1: in a very strong position here as one of the
• 2:19
  Speaker 1: leaders in regards to overall performance at the same time,
• 2:25
  Speaker 1: when you look at the actual holders, when you look
• 2:27
  Speaker 1: at asset holders moving into the platform platform right now,
• 2:30
  Speaker 1: x stocks, one of my favorite platforms, is leading the
• 2:33
  Speaker 1: way right now. When you look at these platforms like
• 2:37
  Speaker 1: this in terms of growth opportunity, and especially where Ondo
• 2:40
  Speaker 1: is today, what are the top platforms that you think
• 2:44
  Speaker 1: are going to be around in the next twelve months.
• 2:49
  Speaker 3: Yeah, great question. I mean, as you rightfully point out,
• 2:51
  Speaker 3: Onto is the leader right now in token is stocks
• 2:53
  Speaker 3: and ETFs. We've got sixty sixty five percent market share
• 2:57
  Speaker 3: depending on you know, the day that you look. Box
• 3:00
  Speaker 3: was first to launch. You also had the robin Hood
• 3:03
  Speaker 3: platform that launched before us. But Onto really has taken
• 3:07
  Speaker 3: the lead in part because we were able to do
• 3:10
  Speaker 3: what others couldn't, which is offer permissionless wrappers in combination
• 3:14
  Speaker 3: with very strong execution quality and liquidity. So anyone who
• 3:18
  Speaker 3: buys any of our stocks on the blockchain rails can
• 3:21
  Speaker 3: rest assure that they're buying it at more or less
• 3:23
  Speaker 3: brokerage prices. Right Our assets track those brokerage prices best
• 3:28
  Speaker 3: in class, and that really is what investors are looking for.
• 3:31
  Speaker 3: What you're really starting to see is that crypto exchanges
• 3:34
  Speaker 3: crypto wallets. Everyone is trying to turn themselves into the
• 3:37
  Speaker 3: everything app, and that includes offering stocks. They come to
• 3:41
  Speaker 3: us to essentially power that offering, and we are best
• 3:44
  Speaker 3: in class at offering liquidity and execution. You have seen
• 3:47
  Speaker 3: other platforms also get into this space. I mean Binance
• 3:50
  Speaker 3: launch their own b stocks offering, bid Get is offering
• 3:53
  Speaker 3: stocks on their platform. So I do fully expect other
• 3:57
  Speaker 3: players to still enter, but ONO definitely as a first
• 4:00
  Speaker 3: mover advantage.
• 4:02
  Speaker 1: So first mover advantage that we have seen obviously with
• 4:05
  Speaker 1: x STOs, many of the ones you just mentioned, even
• 4:07
  Speaker 1: coinbase now getting into the game. So a lot of activity.
• 4:11
  Speaker 1: The one thing though, that I think everybody at least
• 4:13
  Speaker 1: that I've talked to within our own communities and a
• 4:16
  Speaker 1: lot online, has been the market hours trading availability. If
• 4:20
  Speaker 1: you look at the current situation right now, you're talking
• 4:23
  Speaker 1: about a twenty four to five potential opportunity here versus
• 4:27
  Speaker 1: like a twenty four to seven, which is where you
• 4:30
  Speaker 1: have a chance if you're around the globe to be
• 4:32
  Speaker 1: able to play these markets, especially over the weekends. Why
• 4:37
  Speaker 1: are you still going with twenty four to five as
• 4:39
  Speaker 1: the primary focus. Why not go ahead and extend this
• 4:42
  Speaker 1: out to full tradeability.
• 4:45
  Speaker 3: Yeah, it's a great question, and it kind of gets
• 4:47
  Speaker 3: to the core of what these stoke nice stocks really are.
• 4:49
  Speaker 3: Right there are new instruments that are being issued on chain.
• 4:52
  Speaker 3: What you buy is in token form economic exposure to
• 4:56
  Speaker 3: the underlying just like when you buy a stable coin,
• 4:59
  Speaker 3: you basically buy a one dollar on chain that is
• 5:02
  Speaker 3: backed by a dollar in a bank account or treasury
• 5:04
  Speaker 3: in a custody account. But for us to mint a
• 5:06
  Speaker 3: new token, we actually have to be able to acquire
• 5:09
  Speaker 3: the underlying to back these tokens. As a result, we
• 5:14
  Speaker 3: are minting and burning of creating new tokens on the
• 5:19
  Speaker 3: underlying markets that right now only offer twenty four to five. Now,
• 5:23
  Speaker 3: there are ways that we are working on in order
• 5:25
  Speaker 3: to extend this to twenty four to seven minting and burning,
• 5:28
  Speaker 3: and in parallel, a lot of our partners have already
• 5:31
  Speaker 3: deployed these assets on their own books, on crypto exchanges
• 5:35
  Speaker 3: where you can actually trade these things twenty four to seven.
• 5:38
  Speaker 3: So if you go on Finance or biggit or other
• 5:40
  Speaker 3: platforms right now, you can buy on those stocks twenty
• 5:43
  Speaker 3: four to seven, but not directly minted by us over
• 5:46
  Speaker 3: the weekend, but from pre funded accounts with market makers.
• 5:50
  Speaker 1: Yeah, okay, so I think that's a good explanation of
• 5:52
  Speaker 1: it for those who don't really completely understand how a
• 5:57
  Speaker 1: PERP works. Because if you, you know, if you don't
• 6:01
  Speaker 1: have a stock that's launched, if you look at what's
• 6:03
  Speaker 1: going on with SpaceX will most likely say the same
• 6:06
  Speaker 1: thing going on with Anthropic, etc. Explain to me what
• 6:09
  Speaker 1: happens when a PERP essentially gets matured into an actual IPO.
• 6:14
  Speaker 1: How does that process take place if I'm holding that
• 6:18
  Speaker 1: PERP when the IPO occurs and there's available stock out
• 6:21
  Speaker 1: on the market.
• 6:22
  Speaker 3: Yeah, it's a great question because not only do you
• 6:25
  Speaker 3: see a proliferation right now and these spot tokens that
• 6:28
  Speaker 3: onto offers, but there's also a proliferation of these perpetual
• 6:31
  Speaker 3: futures platforms that also offer exposure to stocks, even pre
• 6:36
  Speaker 3: IPO stocks. When a PURP launch is on a pre
• 6:39
  Speaker 3: IPO stock, you can only do that really with the
• 6:41
  Speaker 3: PERP because there's no real way to actually acquire the
• 6:44
  Speaker 3: underlying physical so the spots oganization doesn't work. Yet on
• 6:48
  Speaker 3: a PERP platform, everything is purely synthetic exposure. So it
• 6:52
  Speaker 3: is absolutely possible to create a perpetual future at the
• 6:56
  Speaker 3: time of IPO, that pre IPO stock will just converge
• 6:59
  Speaker 3: to the price that it is trading on the NASDAK
• 7:02
  Speaker 3: or the New York Stock Exchange and the like. Now
• 7:04
  Speaker 3: there's real risk in these markets obviously, because before a
• 7:08
  Speaker 3: market launches, what really is the price of this thing.
• 7:10
  Speaker 3: But a lot of people want to speculate, want to
• 7:13
  Speaker 3: get exposure to these pre IPO stocks, and that is
• 7:15
  Speaker 3: why they go in on these purpse platforms. What you
• 7:18
  Speaker 3: just showed though, is very interesting because it does highlight
• 7:21
  Speaker 3: a key problem right now with perpetual futures, and that
• 7:26
  Speaker 3: is that they're incredibly capital inefficient in normal and right now,
• 7:32
  Speaker 3: if people want to go and have a PURP, what
• 7:34
  Speaker 3: they do is they use stable coins as collateral that
• 7:37
  Speaker 3: they can then do and open a futures contract. Perpetual
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  Speaker 3: futures contract on these positions, right but you have to
• 7:44
  Speaker 3: deposit stable coins in order to actually open that. A
• 7:47
  Speaker 3: market maker then has to come in and short the PERP,
• 7:51
  Speaker 3: but also is stable coin collateral. They then have to
• 7:53
  Speaker 3: hedge off chain. So this goes into a wider issue
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  Speaker 3: where there isn't real connection right now between perpetual futures
• 8:01
  Speaker 3: platforms and TRAT five platforms because they lack the token
• 8:05
  Speaker 3: I spot collateral, and that is what Onto will launch
• 8:08
  Speaker 3: pretty soon in order to actually have token I spot
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  Speaker 3: collateral on these purpse platforms and dramatically increase capital efficiency.
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  Speaker 1: So when you say launching that pretty soon, what does
• 8:19
  Speaker 1: that look like in terms of the roadmap and timing wise,
• 8:21
  Speaker 1: because there's a lot happening obviously in the IPO space
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  Speaker 1: right now.
• 8:26
  Speaker 3: Yes, that's right. So for our perpetual futures platform, we
• 8:30
  Speaker 3: actually launched public beta earlier this week. We capped it
• 8:34
  Speaker 3: at a limited waitlisted user set because quite frankly, the
• 8:37
  Speaker 3: demand that we see is pretty overwhelming. We expect to
• 8:40
  Speaker 3: release that over the next couple of weeks so that
• 8:42
  Speaker 3: we can do general availability. But the demand that we've
• 8:45
  Speaker 3: seen so far just points to the fact that everyone
• 8:47
  Speaker 3: right now wants to express their opinion and interest on stocks,
• 8:52
  Speaker 3: ideally viaur perps to get leverage. There's just a lot
• 8:55
  Speaker 3: of hype right now around the space right and this
• 8:58
  Speaker 3: really is going to old catalyze with SpaceX IPO, the
• 9:02
  Speaker 3: open ai IPO happening later this year, Anthropic IPO, so
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  Speaker 3: we are anticipating the flows into these token is stocks
• 9:12
  Speaker 3: platforms and purse platforms only to increase because it really
• 9:16
  Speaker 3: is the only option for a lot of offshore investors.
• 9:18
  Speaker 3: Quite Franks right Onto does have the capabilities to also
• 9:22
  Speaker 3: tokenize spot assets on the day of their IPO. So
• 9:26
  Speaker 3: this Friday coming up, we will tokenize SpaceX day one
• 9:30
  Speaker 3: and make it available to all the investors offshore that
• 9:33
  Speaker 3: want to buy it.
• 9:35
  Speaker 1: All right, so day one on SpaceX token right now
• 9:40
  Speaker 1: you can go out. Of course, on xtox we've got
• 9:43
  Speaker 1: big get wallet. Of course, they're doing a successful SpaceX
• 9:48
  Speaker 1: campaign that they're launching. And the key here, I guess
• 9:51
  Speaker 1: is going to be timing and exposure because this is
• 9:52
  Speaker 1: going to happen with other you know, launch IPOs. You
• 9:56
  Speaker 1: mentioned Anthropic, open AI, et cetera. But there could be
• 9:59
  Speaker 1: a that would most likely make it maybe this year,
• 10:03
  Speaker 1: And I think that's the biggest thing that people are
• 10:05
  Speaker 1: looking at in terms of being able to get into
• 10:08
  Speaker 1: these kinds of investments. When you look at what's going
• 10:11
  Speaker 1: on with SpaceX, I mean many people would say this
• 10:15
  Speaker 1: is going to be a market wrecker. What do you
• 10:18
  Speaker 1: think can you think that this is going to be
• 10:20
  Speaker 1: a problem in terms of you know, this is my opinion.
• 10:24
  Speaker 1: I think we're going to see a lot of exit
• 10:26
  Speaker 1: liquidity being retail unfortunately and going into an IPO of
• 10:31
  Speaker 1: this size. And here we are sixteen hours away from
• 10:33
  Speaker 1: this thing.
• 10:35
  Speaker 3: Yeah, it's going to be very interesting to see the
• 10:38
  Speaker 3: dynamics on this one because I think it is the
• 10:40
  Speaker 3: largest IPO ever. The valuation is truly mind blowing and
• 10:44
  Speaker 3: will it offshore though, there's a lot of demand for
• 10:48
  Speaker 3: these types of stocks still, Okay, So whether or not
• 10:50
  Speaker 3: goes up or down, I mean, we're seeing tremendous imbounds
• 10:54
  Speaker 3: offshore because it really is the only way to get
• 10:57
  Speaker 3: exposure to space six often is via this token iszed
• 10:59
  Speaker 3: wrap format, So we expect very meaningful flows. Whether or
• 11:04
  Speaker 3: not it goes up or down, I'm not sure, but
• 11:06
  Speaker 3: I think a lot of brokers in particular are also
• 11:10
  Speaker 3: preparing for record trading volumes. I think a lot of
• 11:14
  Speaker 3: people are not prepared for the flows that are coming
• 11:16
  Speaker 3: to be.
• 11:17
  Speaker 1: Honest, I'm looking at some of the at least early data.
• 11:22
  Speaker 1: Right now, this has drawn more than seventy billion worth
• 11:25
  Speaker 1: of retail orders alone. It's raised seventy five billion. This
• 11:29
  Speaker 1: is making retail interest alone enough to nearly fill the
• 11:33
  Speaker 1: entire sale. And if you kind of compare this to
• 11:35
  Speaker 1: a Ramco Saudi Aramco, which happened back in twenty twenty,
• 11:38
  Speaker 1: I mean that was barely thirty billion dollars and here
• 11:41
  Speaker 1: we are at two x of that plus, so you've
• 11:46
  Speaker 1: got SpaceX As a result, now twenty percent of their
• 11:48
  Speaker 1: IPO is going to be allocated to real retail investors.
• 11:51
  Speaker 1: That's the concern I have that I think is the
• 11:53
  Speaker 1: one that could really affect the market. Do you think
• 11:57
  Speaker 1: we'll see a circuit breaker thrown in the market, like
• 12:02
  Speaker 1: stop trading, you know, changes lock up? What do you think?
• 12:07
  Speaker 3: I think it's definitely possible because it's untested. Financial market
• 12:12
  Speaker 3: infrastructure is very good until it isn't. I think you'll
• 12:15
  Speaker 3: also see quite a lot of clearing and executing brokers
• 12:19
  Speaker 3: potentially hit their net cap limits just because of the flows. Right,
• 12:24
  Speaker 3: So I think it's possible that we see something break
• 12:26
  Speaker 3: on Friday, particularly given the retail demand. Yeah.
• 12:31
  Speaker 1: Yeah, well, I think the point we're going to be
• 12:34
  Speaker 1: dealing with is does SpaceX, you know, kind of go
• 12:36
  Speaker 1: down in history as the one IPO that took traditional
• 12:40
  Speaker 1: finance down? Is my question.
• 12:43
  Speaker 3: I mean, it further. It also just illustrates how I mean,
• 12:46
  Speaker 3: TRADFI is great, but the rails are pretty antiquated, right.
• 12:49
  Speaker 3: I do hope exactly time we actually get to some
• 12:52
  Speaker 3: native IPOs on public blockchain rails. Not to say that
• 12:55
  Speaker 3: public blockchains are without fault, but I think over time
• 12:58
  Speaker 3: it's going to be good to have alternative ill that
• 13:00
  Speaker 3: can stay up twenty for seven seamlessly.
• 13:03
  Speaker 1: You think Elon is gonna sell bitcoin to kind of
• 13:07
  Speaker 1: get some excess cash here going into this IPO. I
• 13:10
  Speaker 1: wonder how he's going to do cash management. They're setting
• 13:13
  Speaker 1: on a decent amount, I would assume you know, right now,
• 13:17
  Speaker 1: what do you think?
• 13:18
  Speaker 3: Yeah, I'm not sure he's going to sell bitcoin, but
• 13:21
  Speaker 3: I do know that plenty of other people have sold
• 13:23
  Speaker 3: bitcoin already in an anticipation of this IPO and some others.
• 13:26
  Speaker 3: I mean, you've seen a pretty drag on the crypto
• 13:29
  Speaker 3: markets and broader technology markets in part to create similarquidity
• 13:32
  Speaker 3: for this event. I think quite frankly, we'll see something
• 13:35
  Speaker 3: similar happen with Anthropic and the open AI as well.
• 13:41
  Speaker 3: But yeah, it was untested times. It's going to be
• 13:43
  Speaker 3: very interesting to see how it evolves. But I do
• 13:45
  Speaker 3: know that Onto, as a token I stock provider to
• 13:47
  Speaker 3: offshore investors, stands to gain quite a bit with this.
• 13:52
  Speaker 1: I don't think there's enough bitcoin out there that would
• 13:55
  Speaker 1: really be in a position where it would really shift markets.
• 13:58
  Speaker 1: I think this is probably going to come from the
• 14:00
  Speaker 1: traditional securities markets. What we're going to see of other
• 14:04
  Speaker 1: stocks being sold to possibly go into dry powder. Some
• 14:07
  Speaker 1: of that I think has been the disie that we've seen.
• 14:10
  Speaker 1: We've seen a little bit already, so there's definitely some
• 14:12
  Speaker 1: capital on the sideline going into this tokenized shares of
• 14:17
  Speaker 1: private companies. This is something that we think is a
• 14:20
  Speaker 1: great opportunity, but it also could shift the landscape for
• 14:25
  Speaker 1: maybe future IPOs. We're already seeing a lot of privately
• 14:28
  Speaker 1: held companies in the robotic space, even in the early
• 14:31
  Speaker 1: stage AI space right now. What about that as an opportunity,
• 14:35
  Speaker 1: especially for token iss pre stocks on ondo.
• 14:39
  Speaker 3: Yep, Yeah, I think so Onto historically is always focused
• 14:43
  Speaker 3: on assets that are already in the public markets. Right
• 14:46
  Speaker 3: We believe it is very important for investors to have
• 14:48
  Speaker 3: full pricing transparency on what it is worth and then
• 14:52
  Speaker 3: what they should be paying, and to have deep liquidity
• 14:55
  Speaker 3: into these markets so that they can buy in size. Now,
• 14:58
  Speaker 3: clearly there's a lot of demand for these pre IPO
• 15:01
  Speaker 3: stocks too, particularly the ones that we've already been mentioning
• 15:04
  Speaker 3: on the show, Open a I, Anthropics, Base six, a
• 15:06
  Speaker 3: few others. I think if a company is call it
• 15:10
  Speaker 3: within twelve months of IPO and there's a real path
• 15:13
  Speaker 3: to liquidity for investors, it can absolutely make sense to
• 15:16
  Speaker 3: tokenize these and make them available, particularly to offshore investors
• 15:20
  Speaker 3: that otherwise would not have access. Doing it for purely
• 15:23
  Speaker 3: private companies where the path to IPO is unclear and
• 15:27
  Speaker 3: people may still be illiquid for a couple of years,
• 15:31
  Speaker 3: that's not something that ONTO will be focusing on. But
• 15:34
  Speaker 3: luckily the IPO pipeline is shaping up to be quite robust,
• 15:37
  Speaker 3: So there's probably a couple of pre IPO companies that
• 15:39
  Speaker 3: we can.
• 15:40
  Speaker 1: Do interesting Okay, I look at it this way. Okay,
• 15:44
  Speaker 1: So you've got coinbase moving into the market. Obviously, Robin
• 15:46
  Speaker 1: Hood already been there, We've got DTCC spending has already
• 15:50
  Speaker 1: spun up. And then of course we see X stocks
• 15:53
  Speaker 1: and the growth that we've seen right there. We showed
• 15:54
  Speaker 1: the chart earlier. Why would people choose a twenty four
• 15:58
  Speaker 1: or five versus a twenty four to seven marketplace. Why
• 16:02
  Speaker 1: wouldn't they just choose something that has full opportunity in
• 16:06
  Speaker 1: terms of tradeability. Why go the ONTO route.
• 16:11
  Speaker 3: Well, to be clear, ONTO assets are trading twenty four
• 16:13
  Speaker 3: to seven already on multiple crypto exchanges. It's just that
• 16:17
  Speaker 3: we cannot create these tokens in the current state over
• 16:20
  Speaker 3: the weekend. X stox is the exact same thing. By
• 16:23
  Speaker 3: the way, X stocks cannot create tokens over the weekend,
• 16:26
  Speaker 3: none of the token is. Stock spot providers can create
• 16:29
  Speaker 3: tokens over the weekend, but our assets can trade twenty
• 16:33
  Speaker 3: four to seven as long as a book is deployed
• 16:34
  Speaker 3: on a crypto exchange where it can trade. Now in parallel,
• 16:38
  Speaker 3: you also have the New York Stock Exchange, the NASDAK,
• 16:40
  Speaker 3: a lot of the other trad five players trying to
• 16:43
  Speaker 3: move towards twenty four to seven markets because they see
• 16:45
  Speaker 3: that this is what the market wants. The moment that
• 16:48
  Speaker 3: happens and we can actually acquire underlying shares in the
• 16:52
  Speaker 3: chrad five market over the weekend, we can turn on
• 16:55
  Speaker 3: twenty four to seven minting and burning of our assets,
• 16:57
  Speaker 3: no problem, okay. And then what you'll end up seeing
• 17:00
  Speaker 3: is the liquidity that is already available on crypto exchanges
• 17:03
  Speaker 3: over the weekend, that is pre funded is also going
• 17:05
  Speaker 3: to get dramatically better because people can create and redeem
• 17:09
  Speaker 3: over the weekend as well.
• 17:11
  Speaker 1: Yeah, okay, So do you think the DTC is kind
• 17:14
  Speaker 1: of going through a situation right now where they're just
• 17:18
  Speaker 1: trying to appease shareholders and what's looked at If you
• 17:21
  Speaker 1: look at where some of the partnerships have been allocated,
• 17:26
  Speaker 1: it's mostly been institutional versus what we've seen in other
• 17:30
  Speaker 1: capacities around this. You know, the purpose market's obviously what
• 17:33
  Speaker 1: we've seen with X stocks, et cetera, even coin based
• 17:35
  Speaker 1: to a certain extent. But do you think DTC is
• 17:39
  Speaker 1: the only way people are going to be able to
• 17:41
  Speaker 1: have shareholder rights now going through the deal?
• 17:45
  Speaker 3: Yeah, there's there's a lot of debate in the industry
• 17:50
  Speaker 3: on whether it makes sense to have a rapper. Rapper
• 17:53
  Speaker 3: being a new instrument that is created that is backed
• 17:56
  Speaker 3: by an actual stock, but what you hold is not
• 17:59
  Speaker 3: the same thing in the actual stock. It doesn't come
• 18:01
  Speaker 3: with shareholder rights, although it does come with dividend rights
• 18:04
  Speaker 3: depending on how it's structured, versus you know, go for
• 18:08
  Speaker 3: a native form this is what the TTCC is doing.
• 18:10
  Speaker 3: This is what Securititize and super State and some others
• 18:13
  Speaker 3: are doing. Our opinion has always been let all models
• 18:17
  Speaker 3: coexist and then you let the market decide.
• 18:20
  Speaker 1: What it is they want.
• 18:22
  Speaker 3: Right and right now, the market is already deciding to
• 18:24
  Speaker 3: be honest, and that is that the rapper format is preferred,
• 18:28
  Speaker 3: because that's where all the growth is driven by us
• 18:30
  Speaker 3: and to a lesser extent, Xtox. So but you know,
• 18:33
  Speaker 3: let them all coexist. They each have their pros and cons,
• 18:37
  Speaker 3: and then ultimately the market will decide what they prefer.
• 18:39
  Speaker 3: There are also ways to make the rapper model look
• 18:43
  Speaker 3: a little bit more like the native version. Right if
• 18:46
  Speaker 3: people really care about shareholder rights, you can construct a
• 18:50
  Speaker 3: rappers so that people can express their vote onto announced
• 18:53
  Speaker 3: a partnership with broad Ridge to make that possible. So
• 18:56
  Speaker 3: our Rappers people are going to be able to connect
• 18:58
  Speaker 3: their wallet to a front end going to read which
• 19:02
  Speaker 3: Rapper tokens you hold, and then depending on that balance,
• 19:06
  Speaker 3: you're going to be able to express what your vote
• 19:08
  Speaker 3: would be. And then ondo is the issuer and older
• 19:10
  Speaker 3: of the actual stock. We'll express that vote via broad
• 19:14
  Speaker 3: Ridge in our cleary and executing broker on your behalf,
• 19:17
  Speaker 3: just like an asset manager and an ETF manager would.
• 19:20
  Speaker 3: So there are ways to make the rapper more similar
• 19:23
  Speaker 3: to the native version. All right.
• 19:25
  Speaker 1: So that's interesting because now what you're kind of referring
• 19:28
  Speaker 1: to here is that the market is spoken at least
• 19:31
  Speaker 1: the I would say, the current edge market, which is
• 19:33
  Speaker 1: the crypto market that is looking at these kinds of investments.
• 19:36
  Speaker 1: But it's likely that we're going to see traditional investors
• 19:40
  Speaker 1: coming into this market. And if that is the case,
• 19:43
  Speaker 1: what you're saying is they prefer this route versus the
• 19:46
  Speaker 1: permissioned route that the DTCC is trying to create. Overall,
• 19:52
  Speaker 1: so it's clearly two different philosophies. You think the market
• 19:55
  Speaker 1: is going to go the permissionless route.
• 19:58
  Speaker 3: I think the demand we'll see will be in the
• 20:00
  Speaker 3: permissionless route. It's exactly the same thing as we've seen
• 20:02
  Speaker 3: with stable coins, right. Stable coins are also just rappers, right,
• 20:06
  Speaker 3: and they live offshore, they grew offshore. It's a wrapper
• 20:10
  Speaker 3: around a dollar. It represents a dollar. The benefit of
• 20:13
  Speaker 3: that wrapper model is that you can use it in
• 20:15
  Speaker 3: DeFi and it's very easy to list on crypto exchanges
• 20:18
  Speaker 3: where the cryptonative capital sits. So when you just look
• 20:21
  Speaker 3: at the numbers, already token is stocks are following the
• 20:24
  Speaker 3: wrapper model because it is a much more cryptonative on
• 20:28
  Speaker 3: chain native form factor. You can use it in DeFi,
• 20:31
  Speaker 3: you can use it in self custodial wallets, and you
• 20:33
  Speaker 3: can use it on crypto exchanges. So that's where all
• 20:36
  Speaker 3: the demand is now. It doesn't mean that the DCCC
• 20:38
  Speaker 3: model is bad. Quite the country.
• 20:41
  Speaker 1: Why would we need it?
• 20:42
  Speaker 3: Is very good?
• 20:42
  Speaker 1: Well, why wouldn't we need it?
• 20:44
  Speaker 3: Then? Why would because we as the issuer, oh the rapper,
• 20:48
  Speaker 3: Because we, as the issuer of the rapper, need better
• 20:50
  Speaker 3: financial market infrastructure so that we can actually tap into
• 20:54
  Speaker 3: better liquidity twenty four to five and down the line
• 20:57
  Speaker 3: twenty four to seven. And that ultimately is what the DTCC,
• 21:00
  Speaker 3: in my opinion, is building. It's just a market infrastructure
• 21:04
  Speaker 3: upgrade to support better liquidity at all hours. This is
• 21:08
  Speaker 3: also what the NASTAC, the New York Stock Exchange, but
• 21:11
  Speaker 3: they're all working on right and the moment they get
• 21:14
  Speaker 3: to twenty four to seven, even better twenty four to
• 21:16
  Speaker 3: five liquidity, that is beneficial for us as the issuer
• 21:20
  Speaker 3: of these rappers because we still have to acquire the
• 21:23
  Speaker 3: underlying share for our rappers. All of our rappers right
• 21:26
  Speaker 3: now are back at the DDCC, So you're not taking
• 21:31
  Speaker 3: DTCC out of the equation. Just like with stable coins,
• 21:34
  Speaker 3: all of your dollars in treasuries are still in the
• 21:35
  Speaker 3: banking system. Right with our rappers, everything sits at the DTCC.
• 21:41
  Speaker 1: Sure, sure, So I guess the DTCC guy was right.
• 21:44
  Speaker 1: He said everything's coming through us, you know.
• 21:48
  Speaker 3: Yeah, I mean he's not wrong.
• 21:51
  Speaker 4: He does deal with it, which is why we are
• 21:53
  Speaker 4: actually part of the pilot that the DDCC is doing
• 21:56
  Speaker 4: on token is stocks because if they improve their infrastructure,
• 22:01
  Speaker 4: that helps us as.
• 22:02
  Speaker 3: The issuer of the rappers. We're being the distributor of
• 22:06
  Speaker 3: these stocks essentially, right, and we've lated the rails, we've
• 22:10
  Speaker 3: lated the partnerships. We make sure that offshore investors can
• 22:12
  Speaker 3: access these products because THETCC is going to do it
• 22:15
  Speaker 3: in a permission way, but we can be that permission
• 22:18
  Speaker 3: participant in the DTCC pilot and as a result, really
• 22:21
  Speaker 3: make sure that the DTCC is able to power these
• 22:24
  Speaker 3: rappers in a better way.
• 22:25
  Speaker 1: Okay, all right, so Ian, I'm trying to put this
• 22:28
  Speaker 1: together here. So this is getting routed via the DTCC
• 22:31
  Speaker 1: for traditional finance rails. You've got the major distribution hubs
• 22:36
  Speaker 1: that I would say are pretty much already in play,
• 22:39
  Speaker 1: and i'll call them right now, at least in the
• 22:41
  Speaker 1: stock side, I'd probably say someone like a robin Hood
• 22:45
  Speaker 1: or an Interactive Brokers or someone in that range. Okay,
• 22:49
  Speaker 1: then you've got the rails over here in the crypto
• 22:52
  Speaker 1: land which is trying to get into that. We'll call
• 22:54
  Speaker 1: that coinbase. How would you compete against those who have
• 22:59
  Speaker 1: these massive distribution channels already in place, and they're already
• 23:03
  Speaker 1: locked in to be able to get to these assets.
• 23:06
  Speaker 1: Where would Ondo's place be in that if they have
• 23:10
  Speaker 1: massive distribution and control.
• 23:13
  Speaker 3: Yeah, So we do two things. We power the existing
• 23:16
  Speaker 3: distribution platforms. Right our assets are listed on binance, big Get, Git, MetaMask, Phantom.
• 23:21
  Speaker 3: A lot of the self custodial wallets have no other
• 23:23
  Speaker 3: option than to work with a wrapper company like ours.
• 23:26
  Speaker 3: So we essentially power a lot of the existing distribution platforms,
• 23:31
  Speaker 3: while in parallel also creating new platforms and services that
• 23:34
  Speaker 3: can be brought direct to consumers that we're building out
• 23:37
  Speaker 3: our own distribution rails. Onto Purpse is the perfect example
• 23:40
  Speaker 3: of that, because we believe we can do perps on
• 23:43
  Speaker 3: stocks better than a hyper liquid or a trade XYZ
• 23:46
  Speaker 3: can precisely because we are the issuer of the token
• 23:50
  Speaker 3: I spot collateral, which dramatically improves the capital efficiency of
• 23:54
  Speaker 3: these PERPSE platforms. So we can essentially do both power
• 23:57
  Speaker 3: existing distribution platforms while building up our own distribution rails.
• 24:02
  Speaker 1: Ian, you've got a good stick going here, I will
• 24:05
  Speaker 1: give you that.
• 24:07
  Speaker 3: Appreciate it in the sense.
• 24:08
  Speaker 1: Of understanding where this market is trying to position, because
• 24:11
  Speaker 1: I think they're one. This is going to be a
• 24:14
  Speaker 1: brand new frontier I think for not tokenine securities, but
• 24:18
  Speaker 1: how traders and investors look at these assets going forward.
• 24:22
  Speaker 1: So definitely something to watch. When you look at Clarity
• 24:26
  Speaker 1: right now, Ian, the where it sits today, which is
• 24:30
  Speaker 1: kind of about a fifty to fifty chance, which is
• 24:32
  Speaker 1: kind of the lowest we've seen in a while. Where
• 24:35
  Speaker 1: do you stand on Clarity one passing and does it
• 24:38
  Speaker 1: matter to Hodo?
• 24:41
  Speaker 3: Yeah? I think it should pass, and I think it
• 24:43
  Speaker 3: does matter not just to Hodo with the broader US.
• 24:46
  Speaker 3: I mean, what you're already seeing is these token I
• 24:49
  Speaker 3: stocks proliferating outside the US to offshore investors and the
• 24:54
  Speaker 3: US needs to be able to respond and put a
• 24:57
  Speaker 3: framework in place that really says this is how you
• 25:00
  Speaker 3: and do business in the US for all these tokenized products.
• 25:03
  Speaker 3: So my worry a little bit with clarity not passing
• 25:06
  Speaker 3: is that this entire market will continue to grow offshore,
• 25:10
  Speaker 3: just like stable coins did until it was so large
• 25:12
  Speaker 3: that there's no other way that Congress needs to get
• 25:15
  Speaker 3: involved and essentially make it happen in the US. I
• 25:18
  Speaker 3: would not want that to happen. I think the US
• 25:20
  Speaker 3: has an opportunity here to already lean forward and really
• 25:24
  Speaker 3: embrace the space. And I think what you're starting to
• 25:27
  Speaker 3: see is some of the vested interests, whether it's the
• 25:29
  Speaker 3: banks or others, be a little bit afraid of that, right,
• 25:32
  Speaker 3: But that's to be expected. So I do hope it passes.
• 25:35
  Speaker 3: I'm confident right now and hopeful that it still can pass.
• 25:38
  Speaker 3: I think the US needs it, so we are actively
• 25:41
  Speaker 3: doing everything we can in order to make sure that
• 25:43
  Speaker 3: we get to a bill that makes sense.
• 25:45
  Speaker 1: All right. So I'm looking here at the signed into
• 25:48
  Speaker 1: law percentages down to forty seven. Actually I was wrong,
• 25:50
  Speaker 1: it's under fifty percent now, so continuing the slip really,
• 25:54
  Speaker 1: and this is just in the last week that we've
• 25:57
  Speaker 1: seen this. If it were to fail, though, and this
• 26:00
  Speaker 1: does push off a lot of this activity offshore, wouldn't
• 26:04
  Speaker 1: ondo be a winner there because this essentially is what
• 26:08
  Speaker 1: your business model is built around. Right now.
• 26:12
  Speaker 3: Yes, I think ONTO is very well hedged for Clarity failing,
• 26:15
  Speaker 3: but we do not like it to feel because I
• 26:16
  Speaker 3: think it is important for the US to continue to win.
• 26:19
  Speaker 3: But you are correct in that right now we are
• 26:22
  Speaker 3: the dominant player in the offsher market. Where the Clarity
• 26:25
  Speaker 3: passes or not, we expect that to continue to be
• 26:27
  Speaker 3: the case. But just for the US, as a patriot,
• 26:31
  Speaker 3: I do hope that it passes all right.
• 26:34
  Speaker 1: As far as the banks, do you think that the
• 26:37
  Speaker 1: banks are truly against Clarity or is it just they
• 26:40
  Speaker 1: haven't got the right matchup yet for trying to make
• 26:44
  Speaker 1: this new world work?
• 26:47
  Speaker 3: I mean, I think everyone with any of these bills
• 26:50
  Speaker 3: wants to make sure that their own vested interests are
• 26:54
  Speaker 3: there right, and the interests of the banks as it
• 26:58
  Speaker 3: relates to retaining their deposit and keeping their clients, may
• 27:02
  Speaker 3: have an interest to not be as lenient on the
• 27:04
  Speaker 3: innovation front, or on the stable coin front, or on
• 27:07
  Speaker 3: the token I securities front and some others. Right, So
• 27:10
  Speaker 3: everything you see is just you know. I don't blame
• 27:13
  Speaker 3: the banks for it, per se. I think everyone just
• 27:16
  Speaker 3: wants to do what's right for their own business. But
• 27:18
  Speaker 3: I think if the US wants to be a meaningful
• 27:20
  Speaker 3: player in the digital asset space and actually have innovation
• 27:24
  Speaker 3: and keep the market in the US and not go offshore,
• 27:28
  Speaker 3: I think this bill needs to be pretty aggressive on
• 27:33
  Speaker 3: the innovation front. The banks may not like that, but
• 27:35
  Speaker 3: otherwise the US just risks losing its position. Like to
• 27:38
  Speaker 3: an extent, it almost doesn't. There are regulatory frameworks outside
• 27:44
  Speaker 3: the US that have already embraced the rapper model right on.
• 27:47
  Speaker 3: Those token is stocks have an improved perspectives. In the
• 27:50
  Speaker 3: European Union, our assets are classified under MIFFED as transferable securities.
• 27:55
  Speaker 3: Our assets have an approval from the FSRA in Abu
• 27:58
  Speaker 3: Dhabi for secondary market trading finances using their local broker
• 28:02
  Speaker 3: dealer in Abu Dhabi to list our assets and make
• 28:05
  Speaker 3: them available for trade. So the rapper model outside the
• 28:08
  Speaker 3: US is not going anywhere. It's going to continue to
• 28:10
  Speaker 3: grow and more regulators are embracing it. I think the
• 28:14
  Speaker 3: US just runs the risk of not embracing it and
• 28:16
  Speaker 3: then keeping all that the entire wrapper model offshore. And
• 28:21
  Speaker 3: you know, I don't think that would be in the
• 28:22
  Speaker 3: interest of the US so, but I do want to
• 28:26
  Speaker 3: highlight to an extent to what you highlighted before market
• 28:29
  Speaker 3: structure and what it ends up being. As a patriot,
• 28:32
  Speaker 3: I hope the US does the right thing. Even if
• 28:34
  Speaker 3: they don't, I think ANDO is pretty well positioned in
• 28:37
  Speaker 3: order to keep growing offshore. I just also want to
• 28:39
  Speaker 3: make sure we can also grow in the US.
• 28:42
  Speaker 1: Well that's the key right there, my friend, is let's
• 28:45
  Speaker 1: do screw up the financial markets that could be exploding
• 28:48
  Speaker 1: around US. I just saw news this morning, you know,
• 28:51
  Speaker 1: with Japan they've also altered their you know, their crypto
• 28:54
  Speaker 1: gains tax. We're seeing almost every Asian country out there
• 28:57
  Speaker 1: that's making it more beneficial for those kinds of investors,
• 29:00
  Speaker 1: which means those assets are starting to go live within
• 29:03
  Speaker 1: those regulatory frameworks. So it's a big deal right now.
• 29:06
  Speaker 1: That is happening all around US, just not in the
• 29:09
  Speaker 1: United States just yet. So hopefully you wish will be
• 29:13
  Speaker 1: the key. Ian. Thank you so much for coming in today.
• 29:15
  Speaker 1: We appreciate it.
• 29:17
  Speaker 3: Thanks for having me.
• 29:24
  Speaker 1: If you like this video, like and subscribe, drop a
• 29:27
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• 29:31
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