Latest / The Paul Barron Crypto Show / Banks Losing Fight Against Yields!?🚨Franklin Templeton INTERVIEW🔥Sandy Kaul

Transcript

Banks Losing Fight Against Yields!?🚨Franklin Templeton INTERVIEW🔥Sandy Kaul · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Let's get into DeFi today, and of course a lot
• 0:02
  Speaker 1: that's happening in mainstream when it comes to Wall Street,
• 0:05
  Speaker 1: it's going to be a good one. You guys don't
• 0:07
  Speaker 1: want to miss it. Let's just jump right in, because
• 0:09
  Speaker 1: there's a lot happening in DC right now that I
• 0:11
  Speaker 1: want to focus on. One of those things, of course,
• 0:14
  Speaker 1: was the White House meeting yesterday. This, of course happened
• 0:18
  Speaker 1: with what is appeared to be maybe a little bit
• 0:21
  Speaker 1: of a negotiation. Here as zoomed in on this one,
• 0:23
  Speaker 1: it says people on both sides is from Helen or Tarratt.
• 0:26
  Speaker 1: People on both sides called the meeting productivity productive, but
• 0:30
  Speaker 1: also no necessarily compromises were reached by the end of
• 0:33
  Speaker 1: the meeting. However, a deal specifies that we could see
• 0:37
  Speaker 1: something coming out in detail today. I've talked to two
• 0:39
  Speaker 1: people this morning about this meeting in DC, and they're
• 0:43
  Speaker 1: giving me a very similar report in the sense that
• 0:47
  Speaker 1: no deals were made, but there appears to be more
• 0:51
  Speaker 1: concessions coming in from both sides. So I don't anticipate
• 0:55
  Speaker 1: a decision this week, but I do anticipate that we
• 0:58
  Speaker 1: might hear something very very soon. And of course all
• 1:00
  Speaker 1: of this gets into what's going on in Wall Street.
• 1:04
  Speaker 1: Tim Scott had something to say about this which surprised
• 1:08
  Speaker 1: me when I saw this clip. But take a look.
• 1:10
  Speaker 2: They have to settle it between the banks, frankly, and
• 1:13
  Speaker 2: the crypto industry. Then the way you settled that, in
• 1:15
  Speaker 2: my opinion, is allowed for crypto firms to be able
• 1:18
  Speaker 2: to pay yield. And in addition to that, we have
• 1:22
  Speaker 2: to make sure that those firms are not doing so
• 1:25
  Speaker 2: in a way that suggests it's a savings account. We
• 1:27
  Speaker 2: want to make sure that paying rewards to a crypto
• 1:31
  Speaker 2: balance on your stable coins is tied to something more
• 1:34
  Speaker 2: than just a balance. If I were in the system
• 1:37
  Speaker 2: and not in the and Senate, I would say this simply,
• 1:40
  Speaker 2: I'd be more concerned for a money market account that
• 1:42
  Speaker 2: pays three percent than I would for a savings account.
• 1:46
  Speaker 1: So there you have Tim Scott leading the charge right
• 1:50
  Speaker 1: now on this negotiation and defending stable coin yield. So
• 1:55
  Speaker 1: is something brewing that the banks have actually stepped back
• 1:58
  Speaker 1: away from that, or maybe there's been some sort of modification.
• 2:02
  Speaker 1: Remember early on in the negotiation, there was a proposal
• 2:06
  Speaker 1: that would make you do something that would engage stable
• 2:10
  Speaker 1: coin yield, like an active investor versus a passive investor.
• 2:13
  Speaker 1: I don't know which way it's going to turn, but
• 2:15
  Speaker 1: it's definitely starting to show some signs of life here.
• 2:18
  Speaker 1: We are going to bring in our guests today and
• 2:20
  Speaker 1: we're going to talk about where all of this is heading,
• 2:24
  Speaker 1: and that will be Sandy call, who is the head
• 2:26
  Speaker 1: of innovation and EVP at Franklin Templeton.
• 2:29
  Speaker 3: Excited to be here with you this morning.
• 2:31
  Speaker 1: I love it. Hey, listen, you guys got a lot happening.
• 2:34
  Speaker 1: I was watching your Twitter account here. I like it
• 2:36
  Speaker 1: when you guys tweet like people in crypto idle. Collateral
• 2:44
  Speaker 1: is not going to make it if you guys know
• 2:45
  Speaker 1: what that means. Of course, if you look at tokenized
• 2:48
  Speaker 1: treasuries right now, you guys are one of the top
• 2:50
  Speaker 1: four holding on pretty well here, and of course I
• 2:53
  Speaker 1: think that's a huge feature in terms of the opportunity
• 2:57
  Speaker 1: where we're going to see token ized treasuries going. And
• 3:00
  Speaker 1: then of course Franklin's on chain money Government Money Fund
• 3:04
  Speaker 1: of course, is also doing very well. Kudos to everything
• 3:08
  Speaker 1: you guys are doing around this. I want to get
• 3:10
  Speaker 1: into a couple of points that we get into when
• 3:13
  Speaker 1: you look at where Benji is going right now? Can
• 3:16
  Speaker 1: you give us any information around where Benji is right now?
• 3:21
  Speaker 4: I think the important thing to understand is that we
• 3:24
  Speaker 4: have multiple versions of this Benji product. Benji is the
• 3:29
  Speaker 4: overall name for our tokenized money market fund suite, and
• 3:33
  Speaker 4: because we want to run a global business. I mean
• 3:36
  Speaker 4: crypto markets are global, and money market funds are regulated
• 3:41
  Speaker 4: products tied.
• 3:42
  Speaker 3: To specific jurisdictions.
• 3:44
  Speaker 4: So I think what people often don't understand is that
• 3:48
  Speaker 4: we have different versions of Benji depending on the jurisdiction
• 3:52
  Speaker 4: you're looking to operate in. So we have a US
• 3:55
  Speaker 4: mutual fund version that applies to the forty Act Fund.
• 3:59
  Speaker 4: We have a use its version out of Luxembourg, which
• 4:02
  Speaker 4: is a ce CALF that allows for passporting between all
• 4:06
  Speaker 4: of the use Its eligible countries. We have a Singaporean
• 4:10
  Speaker 4: VCC structure that is available for retail in Asia. And
• 4:15
  Speaker 4: we have a private fund version that we're using for
• 4:18
  Speaker 4: these collateral use cases where you need to be moving
• 4:21
  Speaker 4: across jurisdictions. So we have multiple versions of the Benji
• 4:26
  Speaker 4: and when you look at them together, we're super pleased
• 4:28
  Speaker 4: with the pace of growth and feel really confident that
• 4:31
  Speaker 4: we will be the number one tokenized money market fund
• 4:35
  Speaker 4: by assets in the world when you look across our
• 4:37
  Speaker 4: different versions.
• 4:38
  Speaker 3: Of that fund.
• 4:39
  Speaker 1: I'm looking at your tweet right here because I think
• 4:41
  Speaker 1: this is a good example. You know, sometimes it feels
• 4:44
  Speaker 1: better just to have your assets and your own wallet.
• 4:45
  Speaker 1: Benji technology platform. Is there one that you think in
• 4:50
  Speaker 1: the variations of Benji that is you think is going
• 4:53
  Speaker 1: to be like the number one route to.
• 4:55
  Speaker 4: Get to the conversation you were just highlighting from Senator
• 4:58
  Speaker 4: Scott right that there's different uses. Right, So for retail investing,
• 5:03
  Speaker 4: I think that our forty ACT fund and our use
• 5:06
  Speaker 4: It's fund, and our VCC structures are going to really
• 5:09
  Speaker 4: support this idea that if I have money in stable
• 5:12
  Speaker 4: coins and it's not going to be treated like a
• 5:14
  Speaker 4: savings vehicle, I want to sweep that into these money
• 5:18
  Speaker 4: market funds. I was reading that clip as saying, I
• 5:21
  Speaker 4: think that they're going to push people that want to
• 5:23
  Speaker 4: offer yield on stable coins to declare them to be securities.
• 5:27
  Speaker 3: I think that's the way they're going to.
• 5:29
  Speaker 1: Get an interesting Okay, that would definitely shift the narrative
• 5:35
  Speaker 1: in a big way.
• 5:36
  Speaker 4: The big, you know, the big unlock for institutional investors
• 5:41
  Speaker 4: is going to be through the collateral uses and the
• 5:45
  Speaker 4: utility of being able to use the private version of Benji,
• 5:48
  Speaker 4: which moves anywhere in the world.
• 5:49
  Speaker 3: So I kind of see different pathways for each product.
• 5:52
  Speaker 1: Do you think KYC gating rules are going to hold
• 5:56
  Speaker 1: back Franklin in the future If you look at especially
• 5:58
  Speaker 1: on on chain projects, I was not seeing securitized just
• 6:02
  Speaker 1: launch you get it. But at the same time it's
• 6:04
  Speaker 1: it's requiring a lot of basically KYC. Do you think
• 6:08
  Speaker 1: that will be a problem for onboarding in the future.
• 6:12
  Speaker 4: Yeah, I think it's a problem we're going to have
• 6:13
  Speaker 4: to adapt to, right Franklin, Templeton is an eighty year
• 6:16
  Speaker 4: old firm, so we have a lot of experience with
• 6:19
  Speaker 4: onboarding and we've been able to really upgrade our thinking,
• 6:23
  Speaker 4: our process is our documentation to be able to really
• 6:26
  Speaker 4: operate in the crypto domain with a wallet based investing set.
• 6:31
  Speaker 4: But I think that that was a big learning experience
• 6:34
  Speaker 4: and it's not as easy I think as firms anticipate.
• 6:37
  Speaker 4: So I think that others are going to have to
• 6:40
  Speaker 4: go through this learning process and adapting their ways of
• 6:43
  Speaker 4: doing KYC to succeed.
• 6:45
  Speaker 1: One of the tool sets that I think, and you know,
• 6:47
  Speaker 1: I've talked about this is the idea of stock vaults,
• 6:51
  Speaker 1: which is now launched. And if you look at stock
• 6:55
  Speaker 1: vaults being launched, especially with Onto and xdocs, how are
• 6:59
  Speaker 1: they able to get their equities in their stable coins
• 7:02
  Speaker 1: like Onto Jupiter without any KYC. What's the process here
• 7:06
  Speaker 1: that is working?
• 7:08
  Speaker 4: Yeah, I think that important thing to keep in mind here, Paul,
• 7:11
  Speaker 4: is that they are offering a synthetic exposure to the stock.
• 7:16
  Speaker 4: You are not actually owning the stock. You can earn,
• 7:21
  Speaker 4: you can own the appreciation, you can own any kind
• 7:24
  Speaker 4: of dividend or corporate action, but the actual ownership of
• 7:28
  Speaker 4: the stock is in the vault, and you own part
• 7:31
  Speaker 4: of the vault by investing in these tokens. So it's
• 7:35
  Speaker 4: a more synthetic approach. You can almost think of it
• 7:38
  Speaker 4: as a swap. It gets you the exposure, but you
• 7:41
  Speaker 4: don't own the underlying instrument. That is different than what
• 7:45
  Speaker 4: you hear coming out of the DTCC, out of NASDAC,
• 7:49
  Speaker 4: out of the New York Stock Exchange, where they are
• 7:50
  Speaker 4: actually looking to tokenize the real stock exposure as opposed
• 7:55
  Speaker 4: to this synthetic stock exposure.
• 7:57
  Speaker 1: Okay, so that makes more sense, which makes sense in
• 8:01
  Speaker 1: the sense of especially for KYCML. But you look at
• 8:05
  Speaker 1: this partnership. You guys just announced right here off changed collateral.
• 8:09
  Speaker 1: Now mirroring is live. This is with finance Seafood. What
• 8:13
  Speaker 1: does this do for Benji as the technology platform.
• 8:16
  Speaker 4: Yeah, so this is not our technology platform per se.
• 8:20
  Speaker 4: This is the actual Benji product. And what is happening
• 8:25
  Speaker 4: is is that people are locking up their Benji which
• 8:28
  Speaker 4: is producing the yield in a custody account with Seafood okay,
• 8:33
  Speaker 4: that is then being mirrored on the Binance exchange as
• 8:36
  Speaker 4: a credit that they have that amount of credit to
• 8:41
  Speaker 4: be spending on the exchange to help to do the
• 8:45
  Speaker 4: collateral management on their derivative positions. So it's allowing investors
• 8:51
  Speaker 4: to use a more regulated product with higher consumer protections
• 8:55
  Speaker 4: than a stable coin to be able to do their
• 8:58
  Speaker 4: collateral posting for crypto derivatives. And it's allowing them to
• 9:03
  Speaker 4: continue to collect yield in a legal way where there's
• 9:06
  Speaker 4: not all of this uncertainty about the rights to collect
• 9:09
  Speaker 4: yield on a product.
• 9:10
  Speaker 1: And that well, that's big, you know, in terms of
• 9:13
  Speaker 1: where this could go. Because this, I think this is
• 9:16
  Speaker 1: such a new pro do You have a lot of
• 9:17
  Speaker 1: people asking about this right now are in terms of
• 9:20
  Speaker 1: retail customers.
• 9:21
  Speaker 3: Not retail. This is very much I think instant on
• 9:24
  Speaker 3: the institution's focus.
• 9:25
  Speaker 4: So this is market makers, crypto hedge funds, people looking
• 9:30
  Speaker 4: to do basis trading. Right this is people who are
• 9:34
  Speaker 4: really deploying futures as part of their strategy in the
• 9:38
  Speaker 4: crypto markets. This need to be in the perpetual's markets
• 9:42
  Speaker 4: or to be trading futures, and I think that this
• 9:44
  Speaker 4: is a real service for them that allows them to
• 9:49
  Speaker 4: have safer collateral, get better haircuts on being able to
• 9:53
  Speaker 4: use their collateral and earn the yield. So it's really
• 9:56
  Speaker 4: helping to facilitate greater institutional use.
• 10:00
  Speaker 1: Long before we would see Franklin tradable on something like
• 10:03
  Speaker 1: a Jupiter hype or even a uniswap.
• 10:06
  Speaker 4: Yeah, that's something we're looking at now. Don't forget these
• 10:10
  Speaker 4: are not the actual registered products. To go back to
• 10:13
  Speaker 4: the conversation we just had, these are the synthetic exposures.
• 10:16
  Speaker 3: What you are actually owning in that instance is.
• 10:19
  Speaker 4: You are owning part of the vault. You are not
• 10:21
  Speaker 4: owning the underlying asset. That's why those assets can be permissionless.
• 10:26
  Speaker 4: We are exploring that concept We just want to make
• 10:28
  Speaker 4: sure from a regulatory perspective that that is something that
• 10:33
  Speaker 4: our regulators are comfortable with.
• 10:34
  Speaker 3: I mean, we're.
• 10:34
  Speaker 4: Regulated all over the world in one hundred and thirty countries,
• 10:38
  Speaker 4: so you know, our participation in programs like that are
• 10:41
  Speaker 4: going to very much depend on making sure that we
• 10:43
  Speaker 4: can get our risk teams, our compliance and our legal
• 10:46
  Speaker 4: teams comfortable. But yeah, we're actively looking at that. We
• 10:49
  Speaker 4: think it's a terrific use case. We're just you know,
• 10:52
  Speaker 4: probing how well thought through the scheme is and have
• 10:56
  Speaker 4: they really fuzzled all the necessary controls?
• 10:58
  Speaker 3: Well?
• 10:58
  Speaker 1: Okay, So that kind of gets me into the trading
• 11:01
  Speaker 1: pool side of it. When you look at bingji with
• 11:03
  Speaker 1: trading pairs pools maybe on maybe a UNI swap or
• 11:08
  Speaker 1: a media aura. Is that something that's in the roadmap
• 11:12
  Speaker 1: for you guys, Is that coming soon or where would
• 11:15
  Speaker 1: that look like?
• 11:16
  Speaker 4: Yeah, we're ready to pull the trigger on that as
• 11:18
  Speaker 4: soon as the Clarity Act or other regular information becomes clear.
• 11:22
  Speaker 4: Right now, you need to be a special purpose broker dealer,
• 11:26
  Speaker 4: not just a registered investment dealer to be able to
• 11:29
  Speaker 4: do that. So we are hoping that that's going to
• 11:32
  Speaker 4: be a matter of weeks or months at the least.
• 11:34
  Speaker 4: But yeah, we're all set to go with that. It's
• 11:37
  Speaker 4: just to use a registered, regulated product in this space,
• 11:42
  Speaker 4: you need to have the right permissions for distribution.
• 11:45
  Speaker 1: Yeah, I'm looking at your intra day yield and you say,
• 11:49
  Speaker 1: clarity is really kind of the only thing holding you
• 11:51
  Speaker 1: back right now, that's it.
• 11:53
  Speaker 3: Clarity happens that clarification, right.
• 11:55
  Speaker 1: Okay, I'm looking at your tweet right here. This is
• 11:58
  Speaker 1: talking about intra day yield. Okay, So this is something
• 12:01
  Speaker 1: that I think is getting bigger because now people are
• 12:05
  Speaker 1: starting to realize you can get yield real time, especially
• 12:08
  Speaker 1: in DeFi real time. One of our partners, which is Tangium,
• 12:12
  Speaker 1: they activated their yield mode on a lot of stable
• 12:15
  Speaker 1: coins and other assets out there as well. But you
• 12:18
  Speaker 1: can actually see real time yield being generated on that asset.
• 12:22
  Speaker 1: What's stopping you from doing something like that, like real
• 12:25
  Speaker 1: time yields on ave.
• 12:26
  Speaker 4: We're already doing real time yields on Benji, right, we
• 12:29
  Speaker 4: already offer this. We offer we are the only tokenized
• 12:34
  Speaker 4: money market fund that is trading as a digitally native,
• 12:37
  Speaker 4: non digitally twin product. Okay, we are actually compiling our
• 12:41
  Speaker 4: shareholder record second by second. Yeah, And because we are
• 12:45
  Speaker 4: doing that, every time a block settles on any of
• 12:48
  Speaker 4: the ten blockchains that we're operating across, we update the
• 12:52
  Speaker 4: shareholder record, and therefore we're able to create a precise
• 12:56
  Speaker 4: view of who owns the yield at each interval of
• 13:00
  Speaker 4: the day. And so we're already able to calculate inter
• 13:03
  Speaker 4: day yield. We are paying that out every single calendar
• 13:07
  Speaker 4: day of the year, including Saturdays, Sundays, and holidays through
• 13:10
  Speaker 4: new token drops right into your wallet.
• 13:13
  Speaker 1: Is that going to be something that you can watch
• 13:14
  Speaker 1: it ticking, you know, because.
• 13:16
  Speaker 4: Well not ticking, because this is this is still a
• 13:20
  Speaker 4: shareholder record that has to we have to see the
• 13:23
  Speaker 4: full twenty four hour period of training to understand who
• 13:28
  Speaker 4: gets what portion of it. I see you get it
• 13:30
  Speaker 4: every single.
• 13:31
  Speaker 1: Day, gotcha?
• 13:32
  Speaker 3: All right?
• 13:33
  Speaker 1: So you look at wallet partnerships because this is I
• 13:36
  Speaker 1: think will be a big part of this. We already
• 13:39
  Speaker 1: know they're displaying vaults in a very good way. We've
• 13:42
  Speaker 1: seen this on the Slush wallet. We've seen this on
• 13:46
  Speaker 1: you know, even with deep book. What they've done this,
• 13:49
  Speaker 1: of course is the Sui wallet right there. We also
• 13:52
  Speaker 1: are now starting to see this on meta mask as well.
• 13:56
  Speaker 1: When you look at partnerships, how would that come together
• 13:59
  Speaker 1: for someone like Franklin with some of these DeFi wallets
• 14:03
  Speaker 1: that are out there.
• 14:04
  Speaker 3: Oh yeah, stay tuned on that one. Okay, say I
• 14:08
  Speaker 3: like it?
• 14:08
  Speaker 1: Okay, that means we see we just broke something. We're
• 14:10
  Speaker 1: going to get us a nice partnership here. I can
• 14:13
  Speaker 1: just see it coming. It's coming just down the road.
• 14:16
  Speaker 1: You should partner up also with Tangent. I think Tangent
• 14:18
  Speaker 1: would be a good one as well. If I want
• 14:19
  Speaker 1: to jump over to a clip. This, of course, was
• 14:21
  Speaker 1: an interview I had with bit Wise and we pitched
• 14:24
  Speaker 1: something to them, and I want to hear your response
• 14:27
  Speaker 1: on this. Take a look. Lido is doing this right now.
• 14:30
  Speaker 1: They actually give tokens or it's loyalty bonuses. You could
• 14:35
  Speaker 1: do the same thing here for a wise loyalty token
• 14:37
  Speaker 1: to hold the inside of all make a light a
• 14:40
  Speaker 1: wise loyalty token.
• 14:42
  Speaker 3: I'll try to pitch that in our next products date.
• 14:45
  Speaker 1: Okay, So I'm gonna I'm gonna pin Matt Damond listen,
• 14:49
  Speaker 1: Benji should do it. You've got a perfect tie in
• 14:54
  Speaker 1: with Benjamin Franklin. You tie this in on a marketing theme.
• 15:00
  Speaker 1: Know and you start doing loyalty tokens on this. What
• 15:03
  Speaker 1: do you think?
• 15:03
  Speaker 3: Love it again? Something that I'd say, stay tuned.
• 15:08
  Speaker 1: All right, you guys have got a lot of stuff
• 15:10
  Speaker 1: coming up the pipeline. I think you're being very coy here, Sandy.
• 15:15
  Speaker 1: I think you've got a lot of stuff getting ready
• 15:17
  Speaker 1: to drop. You must have a whole line list waiting
• 15:19
  Speaker 1: for this Clarity Act to just hit, and it's just
• 15:21
  Speaker 1: going to just go boom, boom boom. I anticipate we're
• 15:23
  Speaker 1: going to see some big stuff coming out of you guys.
• 15:25
  Speaker 1: So cool. Hey, let's jump over to our kind of
• 15:28
  Speaker 1: our rapid round and obviously Clarity passing with some sort
• 15:32
  Speaker 1: of a stable coin yields. Do you think you think
• 15:34
  Speaker 1: that's going to happen around them becoming securities?
• 15:38
  Speaker 4: Look, I think that if you pay yield and you
• 15:42
  Speaker 4: put money into a product with the promise of being
• 15:45
  Speaker 4: paid yield, you know that's a security. It's an investment contract.
• 15:49
  Speaker 4: So I do think we passed with stable coin yields.
• 15:51
  Speaker 4: I just think they might have different rules for stable
• 15:54
  Speaker 4: coins that want to pay you.
• 15:55
  Speaker 1: Interesting. I love it. Number two banks try to ban vaults.
• 15:59
  Speaker 1: Do you think that will actually happened.
• 16:01
  Speaker 3: No banks will adopt faults.
• 16:03
  Speaker 1: They're going to just jump right into it. I agree
• 16:05
  Speaker 1: with you. I think it's coming biggest annoyance and hurdle
• 16:09
  Speaker 1: in crypto right now. We call it kyc hell.
• 16:14
  Speaker 3: What do you call it?
• 16:16
  Speaker 4: Well, of these two choices, I would go for kyc.
• 16:19
  Speaker 3: Hell, But right there's always out of the seven gates,
• 16:23
  Speaker 3: right yeah.
• 16:25
  Speaker 1: Bank deposit tokens Are they a scam? Do you think
• 16:28
  Speaker 1: they are not at all?
• 16:29
  Speaker 3: I think that they're like them.
• 16:30
  Speaker 4: I mean, these banks have gigantic networks moving tremendous amounts
• 16:34
  Speaker 4: of money already every day. This is just adding efficiency
• 16:37
  Speaker 4: into that system, So I think they're a perfectly normal
• 16:41
  Speaker 4: evolution in banks adopting blockchain rails.
• 16:44
  Speaker 1: Though, for me, if I had the choice between a
• 16:47
  Speaker 1: bank token and a real stable coin, I would choose
• 16:50
  Speaker 1: the stable coin, So that would be my choice. I
• 16:54
  Speaker 1: wouldn't call them a scam, but I would definitely say
• 16:56
  Speaker 1: i'd choose a different one.
• 16:58
  Speaker 4: I don't forget because if if you are using a
• 17:00
  Speaker 4: bank token, you already have deposits of Fiat in that bank,
• 17:05
  Speaker 4: so you are backed by your own money, so you
• 17:07
  Speaker 4: know one hundred percent that that.
• 17:09
  Speaker 1: Oh I don't know about that. See here we go.
• 17:11
  Speaker 1: Now back my own money. You mean one tenth of
• 17:13
  Speaker 1: my own money.
• 17:15
  Speaker 3: By the own money you have deposited on credit in
• 17:18
  Speaker 3: the bank.
• 17:19
  Speaker 1: On credit, exact keyword there, on credit that is being
• 17:23
  Speaker 1: fractionally reserved out there for sure. Franklin Templeton beats bit
• 17:26
  Speaker 1: wise to launching a trusted XRP vault. This is one
• 17:30
  Speaker 1: that we are very interested in. I am on the
• 17:32
  Speaker 1: fence here. Who's going to win this race?
• 17:35
  Speaker 3: I don't know.
• 17:36
  Speaker 4: I have to ask my team where we are in
• 17:40
  Speaker 4: terms of that and where that is on.
• 17:42
  Speaker 3: The road maps.
• 17:43
  Speaker 1: All right, So that's amazing.
• 17:44
  Speaker 3: Can I take a pass on that one?
• 17:45
  Speaker 1: You can take a pass on that. I'll put you
• 17:46
  Speaker 1: in the middle. Franklin Templeton stops using JP Morgan as
• 17:49
  Speaker 1: a custodian.
• 17:51
  Speaker 3: Do we have a very deep relationship with JP Morgan.
• 17:54
  Speaker 3: We've not a chance losing JP Morgan.
• 17:56
  Speaker 1: Yeah, I think you're dead on there. I figured as
• 17:58
  Speaker 1: much retailer loyalty points, we'll have an AI agent reckoning.
• 18:05
  Speaker 1: We think we're going to see a lot of that
• 18:07
  Speaker 1: in retail in the next three years. This may start
• 18:10
  Speaker 1: to flow over into assets as well. What do you think.
• 18:13
  Speaker 3: I think exactly the opposite.
• 18:15
  Speaker 4: I think we're going to see loyalty points become a
• 18:18
  Speaker 4: more common form of payment and move and become an
• 18:23
  Speaker 4: increasingly important part of investment portfolios and of the Web
• 18:27
  Speaker 4: three ecosystem.
• 18:28
  Speaker 1: Okay, I like that. I'm on the I don't know
• 18:32
  Speaker 1: on this because retailers and loyalty has been a real
• 18:35
  Speaker 1: rub I think for customers because of the valuation of
• 18:39
  Speaker 1: them in many cases. I don't know. If you've been
• 18:40
  Speaker 1: watching the retail sectors out there where they basically deflate
• 18:44
  Speaker 1: your loyalty points, that would be a problem. But if
• 18:47
  Speaker 1: they were to come up and say, hey, we're going
• 18:49
  Speaker 1: to give you new ways to spend it and it's
• 18:50
  Speaker 1: blockchain related, maybe that's a good deal. I think that's
• 18:55
  Speaker 1: celebrity curated vaults. Do you think we'll get like a
• 18:58
  Speaker 1: you know, a JZ.
• 19:00
  Speaker 3: Or one hundred percent? Probably more than we would ever
• 19:05
  Speaker 3: want to see.
• 19:06
  Speaker 1: Yeah, okay, so you're saying same thing. We're going to
• 19:08
  Speaker 1: see so many of these. It's going to be crazy. Listen,
• 19:11
  Speaker 1: it's going to be interesting because there's going to be
• 19:13
  Speaker 1: a lot happening in the space right now. Franklin Templeton
• 19:16
  Speaker 1: is at the very cutting edge of a lot of
• 19:18
  Speaker 1: these new products hitting and I think, as we see
• 19:22
  Speaker 1: retail coming in, what would you say, right now, let's
• 19:26
  Speaker 1: get our you know, our crystal ball, and we have
• 19:30
  Speaker 1: passed clarity Clarity Act is passed. What would be the
• 19:34
  Speaker 1: next major thing in twenty twenty six that could affect
• 19:36
  Speaker 1: the market.
• 19:37
  Speaker 4: I think that you're going to start to see some
• 19:39
  Speaker 4: really interesting, simple to understand, easy to access, real world
• 19:44
  Speaker 4: asset products that are going to be wallet based that
• 19:47
  Speaker 4: people are going to be very excited about accessing that
• 19:50
  Speaker 4: will be eligible through this synthetic vault based exposure okay
• 19:54
  Speaker 4: methodology of being used in DeFi I think we're coming
• 19:58
  Speaker 4: up to the period where the wallet takes off as
• 20:01
  Speaker 4: the center of my financial life.
• 20:03
  Speaker 1: I love it. I cannot imagine being in a finance
• 20:06
  Speaker 1: company at this time. Do you feel that way right now?
• 20:11
  Speaker 1: With all these financial instruments.
• 20:12
  Speaker 4: I was right there with you in nineteen ninety nine
• 20:15
  Speaker 4: doing exactly what I'm doing today, which is using these
• 20:19
  Speaker 4: new technologies to really change the.
• 20:21
  Speaker 3: Way that the system works.
• 20:23
  Speaker 4: And I feel like this is an even bigger opportunity
• 20:26
  Speaker 4: because this one is dramatically and specifically focused on the
• 20:31
  Speaker 4: things of how finance works. Whereas the Internet was just
• 20:34
  Speaker 4: a tool for everybody, right, it's really re engineering finance.
• 20:38
  Speaker 4: I think it's the most exciting time of my career.
• 20:40
  Speaker 1: I love it. I love it. Listen. We've had Sandy
• 20:43
  Speaker 1: on many times. Thank you so much, Sandy for coming
• 20:45
  Speaker 1: in today. We really appreciate it great.
• 20:47
  Speaker 3: Thank you so much for having me.
• 20:55
  Speaker 1: If you like this video, like and subscribe, drop a
• 20:58
  Speaker 1: comment down below, and also join our free private member group.
• 21:02
  Speaker 1: The links in the description