Latest / The Paul Barron Crypto Show / First Crypto Bank Launches🏦Ripple Next?🚨Crypto Market Update

Transcript

First Crypto Bank Launches🏦Ripple Next?🚨Crypto Market Update · The Paul Barron Crypto Show

• 0:00
  Speaker 1: The floodgates are open, a new crypto bank has emerged.
• 0:03
  Speaker 1: We're going to see a lot of this start happening.
• 0:05
  Speaker 1: You don't want to miss it. Let's break it down.
• 0:06
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• 0:08
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• 0:25
  Speaker 1: thank me later. We're going to do a full episode
• 0:27
  Speaker 1: on this because it's big news coming down the pipe,
• 0:29
  Speaker 1: and self custody is the way. Let's go into a
• 0:32
  Speaker 1: couple of points I want to hit on. Of course,
• 0:34
  Speaker 1: everybody's been looking at the ETF to demand, especially around bitcoin.
• 0:38
  Speaker 1: A lot of this has been impacted due to what's
• 0:41
  Speaker 1: been going on with the government shutdown. Yes, we know
• 0:44
  Speaker 1: that market sentiment is down. All of this is starting
• 0:47
  Speaker 1: to kind of push into exactly what we're seeing right
• 0:49
  Speaker 1: here on the ETF inflows. If you kind of look
• 0:52
  Speaker 1: here on the weekly, especially on bitcoin, you can kind
• 0:56
  Speaker 1: of see, these are the problems that we've had over
• 0:58
  Speaker 1: the past almost month. That of course in line with
• 1:02
  Speaker 1: what's been going on with the government shutdown, and even
• 1:05
  Speaker 1: if you look at ethereum also last four weeks down
• 1:09
  Speaker 1: as well. So this may be an indicator as we
• 1:12
  Speaker 1: see the government reopen, which I anticipate looks like it's
• 1:15
  Speaker 1: going to be this week, become a new catalyst for
• 1:18
  Speaker 1: some of this activity on bitcoin and ethereum. After fifty
• 1:23
  Speaker 1: days at home, the House has officially been called back
• 1:25
  Speaker 1: to DC to reopen the government. The vote is now
• 1:28
  Speaker 1: scheduled for Wednesday at four pm. The House is the
• 1:31
  Speaker 1: final step and of course if this occurs, government has
• 1:35
  Speaker 1: been reopened, and this will happen I believe this week.
• 1:37
  Speaker 1: So back to my point there, I want to go
• 1:39
  Speaker 1: to the clip here because this clip will explain a
• 1:41
  Speaker 1: little bit more about what Mike Johnson was talking about.
• 1:43
  Speaker 1: Take a look.
• 1:44
  Speaker 2: So a source on today's House GP conference call said
• 1:47
  Speaker 2: that you told members that you're hoping for a Wednesday
• 1:50
  Speaker 2: House vote to reopen the government. Well, you'll wait until
• 1:53
  Speaker 2: you have the votes. Before you have the vote.
• 1:55
  Speaker 3: We need to get everybody back, everybody in both parties
• 1:58
  Speaker 3: and I've told them to start the travel earlier today,
• 2:01
  Speaker 3: so I expect and hope that we'll have everybody here.
• 2:03
  Speaker 2: So the Senate bill is setting a date for Senate
• 2:05
  Speaker 2: vote on extending the Obamacare subsidies, which are set to
• 2:08
  Speaker 2: expire at the end of the year. You have not
• 2:10
  Speaker 2: committed to a separate House vote on the issue. Thirteen
• 2:14
  Speaker 2: of your most vulnerable members. As you know, I wrote
• 2:17
  Speaker 2: a letter to you saying that after the shutdown quote,
• 2:19
  Speaker 2: we should immediately turn us to the growing crisis and
• 2:21
  Speaker 2: that's going to expire at the end of the year.
• 2:23
  Speaker 2: Will you have a vote on the issue as you're
• 2:26
  Speaker 2: thirteen Republicans, frontline Republicans, people that are that you're the
• 2:30
  Speaker 2: speaker because of that, Will you have a vote so
• 2:33
  Speaker 2: they can vote.
• 2:33
  Speaker 4: Yeah.
• 2:34
  Speaker 3: I've been in contact with those members and all of
• 2:36
  Speaker 3: our members throughout the entire ordeal that we've been going through.
• 2:38
  Speaker 3: This is a very important point. We were always open
• 2:41
  Speaker 3: to sitting down to negotiate and talk through how to
• 2:44
  Speaker 3: reduce healthcare costs. It's a crisis for the American people.
• 2:47
  Speaker 1: The cost of skyrocketed, all right, So this is all
• 2:51
  Speaker 1: looming around, as you guys know, the healthcare scenario. The
• 2:54
  Speaker 1: other pressure that is on the federal government right now,
• 2:57
  Speaker 1: of course, has been travel and this is going into
• 2:59
  Speaker 1: one of the biggest travel seasons of the year. Air
• 3:01
  Speaker 1: traffic controllers now will miss their second full paycheck that's
• 3:04
  Speaker 1: due on Tuesday, and this, of course is due to
• 3:06
  Speaker 1: the shutdown that we're seeing. And the other thing federal
• 3:10
  Speaker 1: law requires back pay wants to shut down ends. That's
• 3:12
  Speaker 1: something that a lot of people kind of forget because
• 3:14
  Speaker 1: this is happening with all government employees. They will be
• 3:17
  Speaker 1: getting back paid, So it's not as though this is
• 3:19
  Speaker 1: going to reduce anything. Is really just a matter of
• 3:22
  Speaker 1: impacting productivity. Other factors that are playing into this right
• 3:26
  Speaker 1: now that I think is a bigger, more concerning issue
• 3:30
  Speaker 1: is the job market pessimism. And this is the concern
• 3:33
  Speaker 1: I have right now going into especially the next FED meeting.
• 3:36
  Speaker 1: Seventy one percent of US consumers expect an increase in
• 3:39
  Speaker 1: unemployment over the next twelve months. That simply means that
• 3:43
  Speaker 1: this could meet the nineteen eighties peak, one that was
• 3:46
  Speaker 1: devastating to economies. We also saw highest inflation, highest interest rates.
• 3:51
  Speaker 1: All that happened in the eighties. This percentage has now
• 3:54
  Speaker 1: doubled in less than a year. So one of the
• 3:56
  Speaker 1: biggest concerns right now, of course, from all business is
• 4:00
  Speaker 1: out there is going to be just in general retail
• 4:04
  Speaker 1: throughput and if you look at the market as we
• 4:06
  Speaker 1: go into the holiday season and now eventually we'll see
• 4:09
  Speaker 1: Q four earnings, which could be a bad quarter for
• 4:11
  Speaker 1: a lot of retailers, a lot of restaurant industry out there,
• 4:15
  Speaker 1: so this will have a big impact. And of course
• 4:17
  Speaker 1: the next roll on top of that is cutting jobs,
• 4:20
  Speaker 1: so Q one next year look for some big ones.
• 4:24
  Speaker 1: Other things right now we're watching is the Clarity Act,
• 4:26
  Speaker 1: and of course Ron Hammond, who's been on our show
• 4:28
  Speaker 1: many times, it's very possible at one are both committees
• 4:31
  Speaker 1: vote their respective version of the bill by years in. However,
• 4:35
  Speaker 1: the next step will be combining the bills and navigating
• 4:38
  Speaker 1: the politics and various stakeholders. It's called all referencing the
• 4:42
  Speaker 1: issue around the Clarity Act, and if we do get
• 4:44
  Speaker 1: this in place by year end, that would be one
• 4:47
  Speaker 1: of the outliers that we're looking at as a catalyst
• 4:51
  Speaker 1: for the market in general. Now, granted, the SOFI news
• 4:54
  Speaker 1: is a big deal because of what's going to go on.
• 4:56
  Speaker 1: I think within the banks now. And the other thing
• 4:59
  Speaker 1: that yeah to kind of consider is just the signals
• 5:02
  Speaker 1: that we're seeing within the market. You know, this of
• 5:05
  Speaker 1: course was coinbased kind of playing on the mcgribs back
• 5:09
  Speaker 1: and then McDonald's. Actually they know what's up. I think
• 5:13
  Speaker 1: here if you know what that means. Typically this means
• 5:16
  Speaker 1: hard times, and you also look at the opportunity of
• 5:20
  Speaker 1: where we could see all coin season maybe re emerging
• 5:23
  Speaker 1: with all of this happening. The big news, of course
• 5:25
  Speaker 1: was nationally chartered bank SOFI now launches crypto trading for consumers.
• 5:30
  Speaker 1: So this simply means, guys, we are going to see
• 5:32
  Speaker 1: I believe a rush especially from the neo banks banks
• 5:36
  Speaker 1: like SOFI and others that will start to push very
• 5:39
  Speaker 1: hard to get this done. I want to go to
• 5:41
  Speaker 1: the clip by the SOFI CEO because he is kind
• 5:45
  Speaker 1: of laying it out what kind of impact this could have.
• 5:47
  Speaker 5: Take a look nanics to see you sir in person.
• 5:49
  Speaker 4: Goodness year as well.
• 5:50
  Speaker 5: Okay, so what's going on here? This is a big deal. Yeah,
• 5:52
  Speaker 5: this morning we deal for you. It is a very
• 5:54
  Speaker 5: big deal. It's a big day and a big milestone.
• 5:57
  Speaker 5: So this morning we're launching as the only nonational bank,
• 6:00
  Speaker 5: the first and only national bank, the opportunity to buy, sell,
• 6:03
  Speaker 5: and hold cryptocurrencies like Bitcoin, Ethereum, and Solano. So I
• 6:07
  Speaker 5: was going to ask, if we just talking about three for.
• 6:08
  Speaker 4: Now, we'll expand, well, beyond three, it'll be a pretty
• 6:11
  Speaker 4: broad assortment. We try to differentiate on being fast, having
• 6:15
  Speaker 4: broad selection, great prices, ease of you. So we'll try
• 6:18
  Speaker 4: to give members SOFI members as much selection as they
• 6:21
  Speaker 4: would like.
• 6:21
  Speaker 5: And what's the difference between going through you and going
• 6:24
  Speaker 5: through coinbase, You're going through Robinhood or somebody else.
• 6:27
  Speaker 4: Yeah, there's a couple of really big differences. First, we're
• 6:30
  Speaker 4: nationally charted bank, which means we have the infrastructure, the processes,
• 6:33
  Speaker 4: the financial conditions that provides the safeguards that a consumer
• 6:36
  Speaker 4: would expect from a bank, which is going to allow
• 6:38
  Speaker 4: us to scale responsibly. The second thing is, because we
• 6:42
  Speaker 4: are one stop shop, you can do all your banking,
• 6:44
  Speaker 4: checking and savings at SOFI. You're borrowing, and you're investing
• 6:47
  Speaker 4: and now crypto. And one of the unique things about
• 6:50
  Speaker 4: that is when you come to SOFI and fund your
• 6:52
  Speaker 4: crypto investments, you'll fund them in a SOFI checking and
• 6:55
  Speaker 4: saves account that checking sames accounts deposits earn interest, you're.
• 6:59
  Speaker 5: Going to fund it with crypto.
• 7:01
  Speaker 4: You're going to fund your checking You're going to fund
• 7:03
  Speaker 4: your checking account with cash. And then when you buy
• 7:06
  Speaker 4: right bitcoiner, Solano or Ethereum, the money will come straight
• 7:10
  Speaker 4: out of your checking stam's account. So when you're not
• 7:12
  Speaker 4: putting cash to work, it's not sitting in an account
• 7:14
  Speaker 4: that earns no interest, and it's not sitting account that's
• 7:17
  Speaker 4: not insured. So the money will sit in an FDIC
• 7:19
  Speaker 4: insured account. Up to two million dollars is what we.
• 7:21
  Speaker 1: Offer, all right, So this is going to get pretty creative,
• 7:25
  Speaker 1: I think with banks in general. The note that I
• 7:28
  Speaker 1: think you should all draw to this is that they're
• 7:30
  Speaker 1: going to expand rapidly into a variety of other assets
• 7:35
  Speaker 1: out there, and I think the SOFI army is probably
• 7:37
  Speaker 1: going to start to drive which of those tokens are
• 7:39
  Speaker 1: going to get listed. But this, of course is a
• 7:42
  Speaker 1: good list of why SOFI matters. It's a well known
• 7:45
  Speaker 1: charter bank. You have banks of the highest institutions in
• 7:47
  Speaker 1: people's lives. Sixty percent of users don't want to pay
• 7:51
  Speaker 1: to sign up for a crypto Shanwing, so they'd rather
• 7:53
  Speaker 1: invest directly from the chicking. I would agree with that
• 7:55
  Speaker 1: to a certain extent. This puts a lot of pressure
• 7:58
  Speaker 1: on coinbase. More important, and until we see a banking
• 8:02
  Speaker 1: system coming into Robinhood, this will put a lot of
• 8:04
  Speaker 1: pressure on Robinhood. The key here will be how many
• 8:09
  Speaker 1: tokens get onto the platform and how quickly. If they
• 8:12
  Speaker 1: come in and get you know, twenty thirty tokens, they
• 8:15
  Speaker 1: are going to be equally competitive to something like a
• 8:18
  Speaker 1: Robinhood with the advantage of a bank being there. So
• 8:21
  Speaker 1: this is going to get interesting pretty quickly. Let's go
• 8:24
  Speaker 1: to another thing. I just kind of compare here the
• 8:26
  Speaker 1: top ten US banks by assets. You have to remember
• 8:29
  Speaker 1: so far right now is holding it around thirty six
• 8:32
  Speaker 1: billion in assets. This was as of twenty twenty four.
• 8:34
  Speaker 1: There's the top ten right there, from JP Morgan holding
• 8:37
  Speaker 1: around three point six trillion all the way down to
• 8:40
  Speaker 1: State Street at three hundred and sixty eight billion. So
• 8:42
  Speaker 1: the point is is there's a lot of upside here
• 8:44
  Speaker 1: for neobanks. There's a lot of upside here for traditional
• 8:47
  Speaker 1: banks if they are willing to take that final step
• 8:51
  Speaker 1: and get more creative in their products and services. I
• 8:53
  Speaker 1: don't know that the insertive will happen. We'll see. I
• 8:56
  Speaker 1: think the neobanks and the new banks that come on
• 9:00
  Speaker 1: to the crypto scene will be the ones that win. One,
• 9:02
  Speaker 1: of course, is the of course Ripple Bank that we're
• 9:05
  Speaker 1: looking at right now. The OCC banking license application now
• 9:08
  Speaker 1: available public review. Remember that all of this ended at
• 9:12
  Speaker 1: the end of October. Mean people thought we would see
• 9:14
  Speaker 1: an immediate approval and instead I think what we're going
• 9:18
  Speaker 1: to see is an extension of what Ripple is going
• 9:22
  Speaker 1: to try to do strategically. Now this may put Ripple's
• 9:25
  Speaker 1: hand into actually going a little bit further because the
• 9:28
  Speaker 1: initial review period is one hundred and twenty days from
• 9:31
  Speaker 1: the application, So that was the October thirty first decision.
• 9:34
  Speaker 1: But between November and early twenty twenty six is what
• 9:38
  Speaker 1: we think could be the scenario where we could see
• 9:41
  Speaker 1: an actual Ripple bank take place. And this would be
• 9:44
  Speaker 1: good for them because it would of course give more
• 9:46
  Speaker 1: XRP news out there and of course expose it maybe
• 9:49
  Speaker 1: at the right time where a lot of other banks
• 9:51
  Speaker 1: are starting to move in this direction so far, First
• 9:54
  Speaker 1: Mover latest XRPETF products now appear on the DTCC website.
• 9:59
  Speaker 1: This was just now you can kind of see it.
• 10:01
  Speaker 1: It's all happening. This is kind of the last step
• 10:03
  Speaker 1: guys before we start to see an actual launch, and
• 10:06
  Speaker 1: this is going to happen. I think we're going to
• 10:08
  Speaker 1: see it as early as this week, So be on
• 10:09
  Speaker 1: the lookout for that. Could be some pretty huge things
• 10:13
  Speaker 1: going on for Ripple and XRP in general. The other
• 10:17
  Speaker 1: thing you got to look at is that, and I
• 10:19
  Speaker 1: would agree Robinhood's statement here is crypto is now becoming
• 10:23
  Speaker 1: the infrastructure for the global financial system as we see
• 10:26
  Speaker 1: more neobanks starting to take because we've seen other banks
• 10:30
  Speaker 1: internationally do what Sofar is doing. Now that we see
• 10:33
  Speaker 1: the neobank here in the United States, I think it's
• 10:36
  Speaker 1: just a matter of time before we start seeing at
• 10:39
  Speaker 1: a lot more newer bank getting involved in this. One
• 10:43
  Speaker 1: thing that everybody's asking right now is where are we
• 10:46
  Speaker 1: on with all this good news government reopening possibly Clarity Act.
• 10:51
  Speaker 1: Now you've got a bank that's doing crypto, all is
• 10:53
  Speaker 1: great news. Where are we on this bull run? And
• 10:56
  Speaker 1: of course the leader of the bull run I would
• 10:59
  Speaker 1: still put in the top spot as Tom Lee. The
• 11:02
  Speaker 1: dynamics are favorable for stocks into year in so we
• 11:06
  Speaker 1: would be buying the dip. And his theory is a
• 11:08
  Speaker 1: little bit interesting because what he looks at is the
• 11:11
  Speaker 1: performance of regular fund managers. They're way behind in comparison
• 11:16
  Speaker 1: to retail who's out in front, and now you actually
• 11:20
  Speaker 1: have fund managers trying to play catch up. So they're
• 11:23
  Speaker 1: actually trying to get to year in so they can
• 11:26
  Speaker 1: keep their clients and show that they can actually perform.
• 11:29
  Speaker 1: That's his whole thesis around this. I want to go
• 11:32
  Speaker 1: to a clip from his interview that kind of breaks
• 11:35
  Speaker 1: this down.
• 11:35
  Speaker 6: Take a look, because I've been in markets, as you know,
• 11:38
  Speaker 6: for thirty five years. Yeah, I've in the nineties, retail
• 11:43
  Speaker 6: was always right. So the reason is I think retail
• 11:50
  Speaker 6: remember now, I mean I'm generalizing because there's a lot
• 11:53
  Speaker 6: in retail. There's like your day traders, and there's Robin Hood,
• 11:56
  Speaker 6: and then there's Schwab and then there's high network. But
• 11:58
  Speaker 6: the reality is that person who's buying stocks because they
• 12:04
  Speaker 6: have a long term view of stocks is going to
• 12:07
  Speaker 6: get this market right.
• 12:08
  Speaker 1: Fucked.
• 12:09
  Speaker 6: There are more of those people in retail than in
• 12:14
  Speaker 6: institutions because the institutional investor has a monthly bogie they
• 12:19
  Speaker 6: got to beat and they're under pressure to beat their peers,
• 12:24
  Speaker 6: so sometimes they forget that in Nvidia is just a
• 12:28
  Speaker 6: long term buy. They're trying to time the market. So
• 12:32
  Speaker 6: I would say anyone who operates with a long term
• 12:35
  Speaker 6: view is the smart money. And that's been mostly more
• 12:38
  Speaker 6: of those folks are in retail.
• 12:41
  Speaker 1: And I think a lot of people are you guys
• 12:43
  Speaker 1: out there right now. You know how to do one
• 12:46
  Speaker 1: thing in this market, and that is total. Look at
• 12:48
  Speaker 1: the long term vision of where these projects are going. Also,
• 12:52
  Speaker 1: look at the shift that we've seen both on a
• 12:56
  Speaker 1: regulatory front, what we've seen on a sentiment front, and
• 12:59
  Speaker 1: now I think think an infrastructure front, which is really
• 13:02
  Speaker 1: going to be the one that changes everything. Speaking of that,
• 13:05
  Speaker 1: you got to look at this infrastructure change because this
• 13:07
  Speaker 1: is a big one right here with UNISWAP. Here was
• 13:10
  Speaker 1: Heyen Adams talking about this. I'm credit excited to offer
• 13:13
  Speaker 1: the first proposal to UNISWAP governance on behalf of UNISWAP. Mainly,
• 13:17
  Speaker 1: what they're going to be doing is that they are
• 13:19
  Speaker 1: going to turn on protocol fees and align the incentives
• 13:22
  Speaker 1: across the SWAP ecosystem. This is a big deal because
• 13:26
  Speaker 1: it's going to put in a unbelievable. Out of fees
• 13:31
  Speaker 1: that are going to go into burning UNISWAP, ten percent
• 13:34
  Speaker 1: of UNISWAP is going to get burned based on the
• 13:37
  Speaker 1: past fees that have been done. So this is something
• 13:39
  Speaker 1: we've called for and talked about here on this show
• 13:41
  Speaker 1: for quite some time. UNISWAP is now there could become
• 13:44
  Speaker 1: an institutional mainstay because of what we're seeing now. Solana
• 13:49
  Speaker 1: ETFs also are out performing expectations with a ten day
• 13:52
  Speaker 1: inflow run. Another big one, of course, Solana we knew
• 13:55
  Speaker 1: would be good be Sole. Of course, with Matt Hogan
• 13:58
  Speaker 1: his team at bitwise has been able to kind of
• 14:00
  Speaker 1: lead the charge on this. The real question will be
• 14:03
  Speaker 1: how does this perform against other ETFs that are big
• 14:08
  Speaker 1: mainstay ETFs like XRP that will be hitting very soon.
• 14:12
  Speaker 1: Is the question. Here's Nick Garassi. Just two years ago
• 14:15
  Speaker 1: we had the sec Chair Gensler indicating that the proof
• 14:18
  Speaker 1: of stake tokens were securities, and now we have the
• 14:21
  Speaker 1: Treasury of the Secretary of providing tax clarity on staking
• 14:25
  Speaker 1: in ETFs of those very same tokens. So, man, we
• 14:29
  Speaker 1: have come a long way. It's a bizarre world. It's
• 14:32
  Speaker 1: almost like are we in it. Sometimes I wonder we
• 14:34
  Speaker 1: are in a simulation. It's got to be. It's got
• 14:37
  Speaker 1: to be a simulation. Last up, of course, was this
• 14:40
  Speaker 1: right here. And I just want you to pay attention
• 14:42
  Speaker 1: to the people that were at this Cantor Fitzgerald meeting.
• 14:47
  Speaker 1: It's very interesting, bedfellows. This tells me that the architectures
• 14:51
  Speaker 1: are being built right now, both in DC Wall Street,
• 14:55
  Speaker 1: and it's all coming around one centralized, decentralized model, and
• 15:00
  Speaker 1: that is Crypto. You guys stick around for all of that.
• 15:03
  Speaker 1: We're gonna be covering this in so much more this week,
• 15:05
  Speaker 1: So make sure and subscribe to the show if you're
• 15:07
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• 15:13
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• 15:16
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• 15:17
  Speaker 1: Baron Show.