WEBVTT 1 00:00:04.639 --> 00:00:05.160 Hey, folks. 2 00:00:05.200 --> 00:00:08.240 We are recording at Chainlink's Smart Cohn event and joining 3 00:00:08.279 --> 00:00:10.599 me is Larry Wade, who is the global head of 4 00:00:10.800 --> 00:00:14.519 Compliance and Regulatory relations for crypto at PayPal. 5 00:00:15.039 --> 00:00:16.160 Larry, Great to have you. 6 00:00:16.120 --> 00:00:18.320 Tony's great man. Great to be here. I'm a big fan, 7 00:00:18.800 --> 00:00:19.519 Thank you, Larry. 8 00:00:19.600 --> 00:00:22.920 And PayPal is doing some amazing things with crypto and 9 00:00:22.920 --> 00:00:25.960 blockchain technology. Before we get into all that, tell us 10 00:00:25.960 --> 00:00:28.239 a bit about your background and how you got into crypto. 11 00:00:28.600 --> 00:00:31.160 Okay, so I am a bit of a nerd, but 12 00:00:31.199 --> 00:00:34.119 I'm also a next college jock, so you know, give 13 00:00:34.320 --> 00:00:36.920 me a little credit there. How did I get into crypto? 14 00:00:37.320 --> 00:00:40.560 So I went to Columbia from my MBA and one 15 00:00:40.560 --> 00:00:43.119 of my classmates one of the smartest guys I've ever met. 16 00:00:43.920 --> 00:00:47.079 He was ex military but also a commodity's trade or 17 00:00:47.799 --> 00:00:51.079 for one of the big banks. Interesting, and every quarter 18 00:00:51.240 --> 00:00:53.799 we kind of have these dinners we have a topic. 19 00:00:54.479 --> 00:00:58.280 So this is nearly nine years ago, the topic was bitcoin. 20 00:00:58.920 --> 00:01:02.000 Now me, I am, you know, over twenty years in 21 00:01:02.240 --> 00:01:05.079 the risk management field, right so credit risk, operational risks, 22 00:01:05.159 --> 00:01:07.879 d ris, et cetera. And you know, I'm like this 23 00:01:07.879 --> 00:01:10.920 feels like tulips I don't get it. No again, I'm 24 00:01:10.920 --> 00:01:15.000 a nerd. So I've tried to read and underbridged audiobookscount 25 00:01:15.000 --> 00:01:16.879 is reading at least four books a month and I've 26 00:01:16.879 --> 00:01:18.640 done it over twenty years. Wow. And when you do 27 00:01:18.719 --> 00:01:21.879 that one, you learn there are moments in time that 28 00:01:21.959 --> 00:01:24.719 things really change. Yeah too, you will never know everything, 29 00:01:25.159 --> 00:01:28.680 right and three, you know, have that childlike curiosity because 30 00:01:28.719 --> 00:01:30.879 you never know what might just come your way. 31 00:01:31.120 --> 00:01:31.439 Sure. 32 00:01:31.560 --> 00:01:33.359 So when I we had that and I said, all right, 33 00:01:33.400 --> 00:01:35.079 I'm willing to hear you. He said, you know, I 34 00:01:35.120 --> 00:01:37.560 think this may be an adoption rate of a new 35 00:01:37.599 --> 00:01:40.359 asset class. He's like, and this technology is interesting. It's like, 36 00:01:40.359 --> 00:01:42.599 I'm trying to figure it out still, but you should 37 00:01:42.599 --> 00:01:45.159 look into it. So I start thinking, Okay, you know 38 00:01:45.200 --> 00:01:47.719 I've done an engagement. You know, we're ordering you know, 39 00:01:47.799 --> 00:01:50.840 one of the large foreign bank swift operations. I'm like, Okay, 40 00:01:51.799 --> 00:01:54.920 when it came about, it definitely was beneficial. But you're 41 00:01:54.920 --> 00:01:57.799 talking the seventies here, right, So you know I can 42 00:01:57.879 --> 00:02:01.879 I can I can send an email to Singapore instantly, 43 00:02:01.959 --> 00:02:05.200 but I can't send value or you know, you can 44 00:02:05.280 --> 00:02:08.960 kind of track what's happening in this kind of internet world, 45 00:02:09.039 --> 00:02:11.479 but from a value transfer perspective, there's still times where 46 00:02:11.479 --> 00:02:13.199 you don't know who owns what, et cetera. So I 47 00:02:13.199 --> 00:02:15.360 got to see that, so I'm sorry, this is interesting. 48 00:02:16.039 --> 00:02:18.680 And then he also says something that really hit in 49 00:02:18.759 --> 00:02:23.199 that his daughter said, Daddy, why would anybody want to 50 00:02:23.199 --> 00:02:25.879 touch money? And I said, wait a minute, this is 51 00:02:25.919 --> 00:02:29.560 also kind of a demographic player as well. Right, So 52 00:02:29.639 --> 00:02:31.360 I went home in the rest of she's white paper, 53 00:02:31.560 --> 00:02:34.000 and I was blown away. I said, this is one 54 00:02:34.039 --> 00:02:36.319 of the most brilliant things I've ever read in my life. 55 00:02:36.639 --> 00:02:38.919 How do you solve the double swim prom how do 56 00:02:38.919 --> 00:02:40.840 you have a trust this transaction in the digital environment? 57 00:02:41.680 --> 00:02:43.400 And then all of a sudden, my mind went crazy 58 00:02:43.400 --> 00:02:46.120 because I started thinking about how I grew up. Sure, 59 00:02:46.159 --> 00:02:49.520 and if it was not for the Internet democratizing information, 60 00:02:49.680 --> 00:02:51.800 I would not be here. But we still have not 61 00:02:51.960 --> 00:02:55.159 democratized value. Yea. And I can make an argument that 62 00:02:55.199 --> 00:02:58.719 democratizing value is a bigger play than even information, because 63 00:02:58.800 --> 00:03:00.439 if you don't know anything, you need transaction value. 64 00:03:00.680 --> 00:03:01.000 Yeah. 65 00:03:01.039 --> 00:03:03.080 So then I read Blockchain for Dummies and I said, 66 00:03:03.120 --> 00:03:07.840 oh my goodness, public blockchain, send me private, private, smart contracts, 67 00:03:08.120 --> 00:03:10.240 anything that's if then's probably going to be a smart contract. 68 00:03:10.280 --> 00:03:11.599 I went down the rabbit hole of the time, and 69 00:03:11.599 --> 00:03:13.360 at the time, I was a management consultant at one 70 00:03:13.360 --> 00:03:15.919 of the big foursts, and I went to the senior 71 00:03:15.919 --> 00:03:18.159 partner I was aligned to and I told her, I said, look, 72 00:03:18.759 --> 00:03:21.039 I think this is going to be something. And I said, 73 00:03:21.400 --> 00:03:23.680 there are two areas. I think there'll be a lot 74 00:03:23.719 --> 00:03:26.800 of value. One is on the engineering side, being able 75 00:03:26.840 --> 00:03:29.520 to deal with the cryptography, the smart contracts, et cetera. 76 00:03:29.840 --> 00:03:32.439 That's going to be something that I understand. But that's 77 00:03:32.479 --> 00:03:35.080 not my specialty, I said. Been on the risk side, 78 00:03:35.759 --> 00:03:37.599 I said, I think we will see inherent risks we've 79 00:03:37.639 --> 00:03:39.639 never seen before. I said, how do you handle a 80 00:03:39.680 --> 00:03:41.639 fork This is back when you know forking and all 81 00:03:41.680 --> 00:03:43.560 these things. I said, how do you handle these things? 82 00:03:43.599 --> 00:03:45.479 I said, I want to try to be one of 83 00:03:45.479 --> 00:03:48.560 the experts in that. And to her credit, she's still 84 00:03:48.599 --> 00:03:50.719 a mentor of mine today. She says, Longe doesn't mess 85 00:03:50.719 --> 00:03:53.400 with your client work. That time again, I'm consulting for 86 00:03:53.439 --> 00:03:56.800 Wall Street banks, asset managers, card companies, et cetera. She said, 87 00:03:56.800 --> 00:03:59.840 I support you. So I was able to kind of 88 00:04:00.680 --> 00:04:04.199 help develop some of the early blockchain and crypto risking 89 00:04:04.240 --> 00:04:08.120 appliance methodologies for one of the Big Four. Got laughed 90 00:04:08.120 --> 00:04:10.479 at a lot. A lot of people told me that 91 00:04:10.960 --> 00:04:13.199 I've seen this before. This stuff doesn't make sense. But 92 00:04:13.240 --> 00:04:16.800 when you put the hours in, that's when you realize, yes, 93 00:04:16.839 --> 00:04:20.279 there's a lot of hyperbolean nonsense, but that's every new innovation, 94 00:04:20.959 --> 00:04:24.680 but it solves real problems. So from there I studied 95 00:04:24.680 --> 00:04:27.839 it every single day. Wow. And I again, you know what, 96 00:04:28.160 --> 00:04:30.600 in my spare time you've talked to my CFO clients, 97 00:04:31.120 --> 00:04:34.519 I will watch podcasts like yours. I remember your early days, 98 00:04:34.839 --> 00:04:39.560 and I just dedicated my kind of life to figuring 99 00:04:39.560 --> 00:04:43.279 out how can I do my part to democratize value 100 00:04:43.720 --> 00:04:45.680 and really try to help the world in that way 101 00:04:45.720 --> 00:04:48.639 because I think the velocity of value transfer, the velocity 102 00:04:48.680 --> 00:04:56.079 of activity, it just could be very beneficial. So fast forward. Finally, 103 00:04:56.120 --> 00:04:57.680 you know, got up to that, you know, getting into 104 00:04:57.720 --> 00:05:00.759 the partner level and work hard, you do it, and 105 00:05:01.079 --> 00:05:04.079 this opportunity of PayPal came about. Wow. And you know 106 00:05:04.480 --> 00:05:07.800 Dan Shulman prior CEO, had some foresight and that he 107 00:05:07.959 --> 00:05:11.240 believed in stable paint technology. Yes, and to get there 108 00:05:11.759 --> 00:05:13.040 you had to do some things. You had to have 109 00:05:13.079 --> 00:05:16.040 an exchange, you had to have one team transfers, you 110 00:05:16.040 --> 00:05:17.720 had to open the PayPal wallet. You to do all 111 00:05:17.759 --> 00:05:20.480 these things. And we had this roadmap, but it went 112 00:05:20.519 --> 00:05:23.800 from a deck to here's a startup within PayPal. Wow. 113 00:05:23.959 --> 00:05:26.040 And you know, I won't go through the whole long story, 114 00:05:26.079 --> 00:05:28.720 but I was fortunateough to be employee one to build 115 00:05:28.720 --> 00:05:30.639 out the risk of the appliance strategy for PayPal, s 116 00:05:30.639 --> 00:05:35.560 Crypto grop incredible and it's been an amazing journey. I'm 117 00:05:35.759 --> 00:05:38.040 blown away by where we are right now. Sure, the 118 00:05:38.079 --> 00:05:42.480 tailwinds are just unbelievable. We're still super early, but I think, 119 00:05:42.879 --> 00:05:45.439 you know, this is really a thing. Now. That was 120 00:05:45.480 --> 00:05:47.839 a very long winded answer. No, that was great. 121 00:05:48.160 --> 00:05:49.160 I mean, what a journey. 122 00:05:49.360 --> 00:05:51.120 And you know one thing that stood out to me. 123 00:05:51.319 --> 00:05:56.480 You spearheading at a one of the top four accounting firms, 124 00:05:56.600 --> 00:06:00.000 blockchain and these things, and what is it like look 125 00:06:00.000 --> 00:06:02.279 looking back to see all of Wall Street and all 126 00:06:02.279 --> 00:06:03.399 the big bangs getting involved. 127 00:06:03.399 --> 00:06:09.240 Now it is something that I thought could happen. I 128 00:06:09.279 --> 00:06:12.920 took a big risk because of you know, your partner 129 00:06:12.920 --> 00:06:17.680 at a big four. That's not a bad life, But 130 00:06:18.079 --> 00:06:21.000 I mean, my goodness, what we went through. I mean, 131 00:06:21.040 --> 00:06:24.199 you think about it from the various and fair enough, 132 00:06:24.680 --> 00:06:26.560 a lot of what happened in our industry was tried 133 00:06:26.560 --> 00:06:29.040 and true. Wall Street she against to be honesty, whether 134 00:06:29.079 --> 00:06:31.720 it's fraud or commingling of funds or lack of segregation 135 00:06:31.759 --> 00:06:34.879 of duties or opick financialuation, MISSI leverage. This is stuff 136 00:06:34.879 --> 00:06:38.680 we've all seen in the risk manager space, but it 137 00:06:38.680 --> 00:06:41.279 could have really sunk us. So the fact that the 138 00:06:41.319 --> 00:06:44.240 industry is so anti fragile it made it through that, 139 00:06:45.199 --> 00:06:47.560 and now we can get on the other side where 140 00:06:48.240 --> 00:06:51.360 those incumbents are saying, Okay, maybe there's some value here. 141 00:06:51.959 --> 00:06:54.920 I'm excited. I'm blown away. I'm thankful that I have 142 00:06:54.959 --> 00:06:57.399 a little bit of a head start in my knowledge base. 143 00:06:57.639 --> 00:06:59.600 I'm thankful PayPal does as well. We were the first, 144 00:06:59.720 --> 00:07:04.600 once a regulated branded stable coin, and you know, I'm 145 00:07:04.639 --> 00:07:09.439 really really excited to integrate it into real world commerce, 146 00:07:10.279 --> 00:07:12.920 and I think that there will be a number of winners. 147 00:07:13.439 --> 00:07:17.600 I think in PayPal's case, we have a very clear mandate. 148 00:07:17.680 --> 00:07:19.600 Right now. We have a two sided network with almost 149 00:07:19.639 --> 00:07:22.959 four hundred million wallets in two hundred countries. We have 150 00:07:23.040 --> 00:07:27.519 merchants and consumers. That is what a lot of organizations 151 00:07:27.519 --> 00:07:30.360 would love to have as a base. We've built our 152 00:07:30.439 --> 00:07:33.800 muscles the last five years on you know, how do 153 00:07:33.879 --> 00:07:38.199 you actually interact on chain in a regulatory compliance manner? 154 00:07:39.639 --> 00:07:42.120 And now we can start having fun to say, all right, 155 00:07:42.120 --> 00:07:44.000 how do you launch a product like pay with crypto? 156 00:07:44.480 --> 00:07:47.000 How do you have a product like we have where 157 00:07:47.040 --> 00:07:48.839 you know, bill paid with stable coins? How do you 158 00:07:48.920 --> 00:07:52.879 have py USD rewards? So now we're saying, all right, 159 00:07:52.959 --> 00:07:58.480 there are existing flows that faster, cheaper, programmable, nearest the 160 00:07:58.560 --> 00:08:02.319 finality just adds value to the entire stack, and how 161 00:08:02.319 --> 00:08:04.560 do we get that flywell? Going? Yes, So that's kind 162 00:08:04.560 --> 00:08:06.519 of where we are right now where I am, But 163 00:08:06.560 --> 00:08:09.600 I'm also just really excited about what everyone else is building. Sure, 164 00:08:09.600 --> 00:08:12.199 and I think they'll be you know, closed loop ecosystems 165 00:08:12.199 --> 00:08:14.800 that interact in their times. For example, if I'm a 166 00:08:14.839 --> 00:08:17.680 bank doing a syndicated wind farm deal in Canada, do 167 00:08:17.759 --> 00:08:20.680 I need to know everyone in my syndicate? No, that 168 00:08:20.720 --> 00:08:23.360 doesn't necessarily need to be on chain. But maybe you're 169 00:08:23.360 --> 00:08:26.399 trying to settle or do something when I need to 170 00:08:26.399 --> 00:08:28.240 go on chain? Well, how do you do that? And 171 00:08:28.279 --> 00:08:29.759 we're just travel will come and play and all these 172 00:08:29.759 --> 00:08:32.000 different things. So now I'm just really excited about the 173 00:08:32.000 --> 00:08:34.440 problems we get to solve. Sure, and sometimes I can't 174 00:08:34.440 --> 00:08:36.039 get I can't believe I get paid to have to 175 00:08:36.039 --> 00:08:37.720 think about these firms because I thought about for free 176 00:08:37.720 --> 00:08:40.559 for a time. So yeah, overall, just really excited. 177 00:08:41.039 --> 00:08:42.960 Let's talk a bit about p y USC and how 178 00:08:43.000 --> 00:08:44.840 it's being used as much as you can share. 179 00:08:45.039 --> 00:08:47.200 Yeah, is it. 180 00:08:47.080 --> 00:08:49.519 Being used behind the scenes for cross border payments but 181 00:08:49.600 --> 00:08:54.279 users don't necessarily know, for instance, settlement our merchants accepting 182 00:08:54.279 --> 00:08:55.399 it and using it as well. 183 00:08:55.480 --> 00:09:00.279 Great question. So PayPal has a Zoom with X of 184 00:09:00.279 --> 00:09:03.080 payments business, and you know that business is in one 185 00:09:03.159 --> 00:09:06.720 hundred and eighty countries, so we've already integrated PYUSD in 186 00:09:06.759 --> 00:09:09.759 a number of flows there some where the customers have 187 00:09:09.879 --> 00:09:13.120 an understanding. For example, pyusc is a funding instrument for 188 00:09:13.159 --> 00:09:16.440 your Zoom transaction. Well, now as opposed to maybe you know, 189 00:09:16.559 --> 00:09:20.080 using bank or balance et cetera. Utilizing pius D, you 190 00:09:20.120 --> 00:09:22.919 can fund that transaction at zero fee and now you 191 00:09:23.000 --> 00:09:25.440 just have the FX. So that's already a benefit to 192 00:09:25.480 --> 00:09:28.120 the customer. Now, on the other hand, there's a lot 193 00:09:28.120 --> 00:09:30.639 of pre funding and cross border payments as you I'm 194 00:09:30.679 --> 00:09:33.919 sure you're aware of. So we also have piloted with 195 00:09:34.000 --> 00:09:38.399 two large partners, one in the Philippines one in Africa, 196 00:09:38.759 --> 00:09:41.720 where now as opposed to kind of pre funding via 197 00:09:41.840 --> 00:09:47.879 wire we're able to utilize PIUSD and have near instant funding. Wow, 198 00:09:48.279 --> 00:09:52.440 and now that allows you to manage your float. It's cheaper. 199 00:09:53.080 --> 00:09:56.240 Everyone can now pass on that value. So those are 200 00:09:56.240 --> 00:09:58.919 just two use cases that are real right now that 201 00:09:59.000 --> 00:10:01.320 we are, you know, really trying to make sure that 202 00:10:01.360 --> 00:10:06.519 we grow in a responsible way. But again that's bringing utility. 203 00:10:06.919 --> 00:10:10.159 Oh absolutely answer your question. Yes, it's already happening. And 204 00:10:10.600 --> 00:10:14.360 after genius and though we don't have rulemaking yet, the 205 00:10:14.440 --> 00:10:19.279 signaling of having stable coin legislation that right there has 206 00:10:19.320 --> 00:10:21.399 really opened the floodgates. So I'm really excited about twenty 207 00:10:21.399 --> 00:10:21.840 twenty six. 208 00:10:22.120 --> 00:10:25.000 So to your point, PayPal has a massive network right 209 00:10:25.039 --> 00:10:27.679 of users and merchants, been around for a long time. 210 00:10:27.720 --> 00:10:30.039 I remember using PayPal back in two thousand. 211 00:10:30.080 --> 00:10:32.519 And most people don't know we own venmo. Yes, you know, 212 00:10:32.600 --> 00:10:33.519 people don't even know that. 213 00:10:33.639 --> 00:10:36.159 So you have the distribution, you have the network build, 214 00:10:36.440 --> 00:10:40.080 but our institutions, outside institutions seeing what you're doing and saying, 215 00:10:40.120 --> 00:10:42.200 you know what, I want to use PayPal's stable cooins 216 00:10:42.240 --> 00:10:42.919 p uy usc. 217 00:10:43.519 --> 00:10:46.279 We are getting tons of inbound to collaborate. We believe 218 00:10:46.279 --> 00:10:49.240 in partnerships. Yeah. Again, there's room for everyone to be 219 00:10:49.240 --> 00:10:51.519 successful at this and we know what we do well. 220 00:10:52.200 --> 00:10:55.519 So to your question, yes, I mean we haven't we 221 00:10:55.559 --> 00:10:58.279 announced even the coin based partnership recently like your spark 222 00:10:58.320 --> 00:11:01.320 et cetera. But whether there's trad fies, merchants, et cetera. 223 00:11:01.960 --> 00:11:04.759 You know, everyone's trying to figure out now that we 224 00:11:04.799 --> 00:11:07.879 have some regulatory clarity. Yeah, well, how do we use 225 00:11:07.919 --> 00:11:10.720 the technology to benefit us and treasury operations and things 226 00:11:10.759 --> 00:11:14.240 of that nature. So yeah, lots of reach out and 227 00:11:14.279 --> 00:11:15.240 that's been really exciting. 228 00:11:16.200 --> 00:11:17.679 It's amazing to see the growth. 229 00:11:17.799 --> 00:11:20.519 And one of the things folks wanted me to ask 230 00:11:21.080 --> 00:11:23.720 is that you offer a crypto assets the ability to 231 00:11:24.080 --> 00:11:29.320 buy sell on both venmo and PayPal. Are there plans 232 00:11:29.360 --> 00:11:31.840 to add more crypto assets as much as you can share? 233 00:11:31.960 --> 00:11:35.679 A good question. So one we're always thinking utility, yeah, 234 00:11:36.399 --> 00:11:39.399 and again is it aligned to the value prop that 235 00:11:39.440 --> 00:11:43.559 we are trying to execute on, which is revolutionizing commerce. 236 00:11:43.960 --> 00:11:46.600 So now again we're really focused on py U s 237 00:11:46.639 --> 00:11:49.200 D and p USD is on multi chain right because 238 00:11:49.200 --> 00:11:52.159 there are different chains that have different benefits. So you know, 239 00:11:52.200 --> 00:11:55.279 the short answer is, you know, if it's aligned to 240 00:11:55.320 --> 00:11:59.360 the strategy adding more coins, yes, but we are not 241 00:11:59.360 --> 00:12:01.919 trying to be a change. There are organizations that do 242 00:12:02.000 --> 00:12:05.080 that in a fantastic manner. So we are trying to 243 00:12:05.080 --> 00:12:09.279 figure out how do we integrate py usd into Venmo 244 00:12:09.519 --> 00:12:13.159 and brain tree and hyperwallet and all these other products 245 00:12:13.240 --> 00:12:16.960 that we have we know will bring real value to 246 00:12:17.039 --> 00:12:18.200 the to the ecosystem. 247 00:12:18.559 --> 00:12:20.879 Yeah, that definitely makes sense. It has to make business 248 00:12:20.960 --> 00:12:24.840 sense right now. There was also a crypto rewards program 249 00:12:24.879 --> 00:12:26.519 that PayPal launch tell us about that. 250 00:12:26.679 --> 00:12:31.840 Yeah, so rewards are interesting because and it is rewards. 251 00:12:31.879 --> 00:12:34.759 It's not interest, it's not yield. You know, if you 252 00:12:34.879 --> 00:12:37.799 go into Genius, it's very clear issuers cannot pass along. 253 00:12:38.000 --> 00:12:40.159 Though we're not the issue er. Paxos is our issuer, 254 00:12:40.519 --> 00:12:44.240 it's our branded and it's it's coregulated. So what we 255 00:12:44.279 --> 00:12:46.960 wanted to do is to be able to again bring 256 00:12:47.080 --> 00:12:52.120 utility to our ecosystem, to get the flywheel going because ultimately, 257 00:12:52.320 --> 00:12:56.759 especially in like the US, though there are you know, issues. 258 00:12:57.080 --> 00:13:00.519 The system works, but how do you incentive people to 259 00:13:00.559 --> 00:13:03.600 adopt this technology and then see the benefits of that technology. 260 00:13:03.960 --> 00:13:06.519 So being able to hold py USC on memoir PayPal 261 00:13:06.759 --> 00:13:10.440 and earn a reward that's utility. So now, and if 262 00:13:10.440 --> 00:13:12.720 you're a merchant or a consumer. So now maybe you're 263 00:13:12.759 --> 00:13:15.480 a merchant and you want to use the bill pay product, 264 00:13:16.159 --> 00:13:18.879 and you are a small business owner and you're paying 265 00:13:18.879 --> 00:13:21.519 your utility bills, but you're holding p y USD and 266 00:13:21.559 --> 00:13:24.600 now you're gaining PRUSD rewards and then you're paying out 267 00:13:24.799 --> 00:13:26.799 and you're paying out at a lower rate, things of 268 00:13:26.799 --> 00:13:28.799 that nature. So we're trying to get that that flywell there. 269 00:13:29.000 --> 00:13:32.080 Or again, you know, you are a consumer and as 270 00:13:32.120 --> 00:13:34.840 opposed to maybe sweeping it, you know, immediately to your 271 00:13:34.879 --> 00:13:37.039 bank bult you say hey, I'd rather hold this, or 272 00:13:37.320 --> 00:13:39.399 I want to convert in and out of another digital asset, 273 00:13:39.480 --> 00:13:41.360 or I want to go one play in the DeFi market, 274 00:13:41.360 --> 00:13:43.080 things of that nature. So we wanted to try to 275 00:13:43.120 --> 00:13:46.440 figure out how can we incentivize our user base to 276 00:13:46.519 --> 00:13:49.039 want to hold it, because, as you know, once you 277 00:13:49.200 --> 00:13:51.360 hold it, use it, play with it, it starts to 278 00:13:51.360 --> 00:13:53.919 make even my mother. Once my mother, if I said, okay, 279 00:13:54.000 --> 00:13:56.480 by you this Bitcoin once she gott and she's like, okay, 280 00:13:56.879 --> 00:13:59.600 is what's going on here? So, you know, stable coins, 281 00:13:59.679 --> 00:14:01.879 especially in the US, it's why do I need it? 282 00:14:01.919 --> 00:14:03.919 You know, I can, I can, I can send VENMO, 283 00:14:04.000 --> 00:14:06.639 I can use cash up, et cetera. But we're really 284 00:14:06.639 --> 00:14:09.799 trying to kind of help change that behavior so that way, 285 00:14:09.879 --> 00:14:11.399 really we can start unlocking the value. 286 00:14:11.720 --> 00:14:13.480 One of the things you guys, which is really cool 287 00:14:13.519 --> 00:14:15.759 that you guys are launched was P two P payments 288 00:14:15.799 --> 00:14:19.039 with PayPal links. Does that include both crypto assets and 289 00:14:19.120 --> 00:14:19.919 P y U s d. 290 00:14:20.360 --> 00:14:22.519 Yep, So I mean being able to send that link. 291 00:14:22.559 --> 00:14:25.440 It's purest in the Indi digital asset. And again we're 292 00:14:25.440 --> 00:14:29.080 trying to just make it as easy as possible for 293 00:14:29.200 --> 00:14:34.519 people to interact and use. Yeah. Again like it. It's fascinating. 294 00:14:34.679 --> 00:14:37.639 I like to say electricity, whether it's you know, direct 295 00:14:37.720 --> 00:14:40.679 or indirect. And we're not you know, you know Tesla, 296 00:14:41.200 --> 00:14:44.559 you know versus uh, you know Edison here. But at 297 00:14:44.559 --> 00:14:46.559 this point we just want to turn the light on. Yeah, 298 00:14:46.600 --> 00:14:49.240 and PayPal's really good at you can turn the light 299 00:14:49.279 --> 00:14:52.679 on in a simple manner with trust. So we're trying 300 00:14:52.679 --> 00:14:54.679 to figure out how can we integrate the technology as 301 00:14:54.759 --> 00:14:57.840 much as possible in a seamless manner that's easy for 302 00:14:57.919 --> 00:15:00.679 customers to interact with that adds value. So we're working 303 00:15:00.679 --> 00:15:01.440 through things like that. 304 00:15:01.679 --> 00:15:03.960 It's great. It's amazing how far things have. 305 00:15:03.960 --> 00:15:08.799 Come, Tony. I truly am blown away. Yeah, and I'm 306 00:15:08.879 --> 00:15:11.600 so thankful for all the challenges. Sure, and as a 307 00:15:11.639 --> 00:15:14.679 risking compliance professional, I've had to think of many what 308 00:15:14.720 --> 00:15:16.919 could go wrongs that you wouldn't even think of what 309 00:15:16.960 --> 00:15:19.559 could go wrong? Yeah, but ultimately that's how you build 310 00:15:19.559 --> 00:15:21.919 anti fragility. And I've worked as a management soon for 311 00:15:21.919 --> 00:15:24.000 a very long time and the truth of the matter 312 00:15:24.080 --> 00:15:26.000 is there's lots of things that go wrong behind the scenes, 313 00:15:26.000 --> 00:15:29.120 but maybe blockchain technology you might not know it right. 314 00:15:29.480 --> 00:15:32.679 So I'm really really excited. And I think it also 315 00:15:33.000 --> 00:15:36.960 aligns with just this overall convergence of where technology is going. 316 00:15:37.080 --> 00:15:39.759 I like to say, when people kind of question, they say, 317 00:15:39.879 --> 00:15:41.039 what do I really need this? I said, do you 318 00:15:41.039 --> 00:15:43.240 think there was gonna be more analog or digital? Do 319 00:15:43.279 --> 00:15:45.759 you think an agentic AI or your digital twin is 320 00:15:45.799 --> 00:15:49.840 gonna send an AH or dollars or maybe utilize the 321 00:15:49.879 --> 00:15:53.039 blockchain exactly? So if you just kind of play this 322 00:15:53.159 --> 00:15:55.960 out it's an overall play for the convergence of all 323 00:15:55.960 --> 00:15:58.960 these new technologies coming online. I was in Austin. I'm 324 00:15:59.000 --> 00:16:01.320 a big Formula One fan, and I went down to 325 00:16:01.360 --> 00:16:05.120 the Grand Prix and first time I got to drive 326 00:16:05.320 --> 00:16:09.320 in a an autonomous vehicle. So my wife and I, 327 00:16:09.360 --> 00:16:12.120 you know, we're downtown, We're looking at the city and 328 00:16:12.200 --> 00:16:14.399 you know, oh, wait a minute, you know, this option 329 00:16:14.639 --> 00:16:16.519 got in and I was like wow, And I thought 330 00:16:16.559 --> 00:16:19.840 to myself, the Internet of things, when these robots and 331 00:16:19.879 --> 00:16:22.480 things like that communicate, it's just even more utility that 332 00:16:22.519 --> 00:16:25.399 we can't even think about at this moment. There's plenty 333 00:16:25.440 --> 00:16:27.120 of problems to solved just in what we know. 334 00:16:27.480 --> 00:16:29.960 Yeah, it's fascinating because you have the convergence of all 335 00:16:30.000 --> 00:16:34.720 these technologies AI, robotics, crypto, block chain, and much more. 336 00:16:34.759 --> 00:16:37.559 And you know, eventually, when we have these humanoid robots, 337 00:16:38.000 --> 00:16:39.919 regardless of what they're doing in the economy, they're not 338 00:16:39.919 --> 00:16:40.120 going to. 339 00:16:40.159 --> 00:16:41.519 Be using cash, not at all. 340 00:16:41.600 --> 00:16:43.120 It's going to be stable coins. 341 00:16:43.240 --> 00:16:46.360 And what I love about stable coins. And it's funny 342 00:16:46.360 --> 00:16:48.399 because I remember the old days, was like I like blockchain, 343 00:16:48.440 --> 00:16:50.279 but I don't like the crypto. Yeah, but what people 344 00:16:50.440 --> 00:16:54.200 understand is having the value chances for mechanism aligned to 345 00:16:54.279 --> 00:16:57.879 the protocol is the AHA for the Web three, right, 346 00:16:57.960 --> 00:17:00.679 and it's one of the flaws of Web two. Web 347 00:17:00.720 --> 00:17:04.279 two is actually legal to transact value initially when it 348 00:17:04.400 --> 00:17:09.039 was being developed, so you know, you still need those 349 00:17:10.359 --> 00:17:18.000 value assets that have incentives for developers, early adopters, and 350 00:17:18.039 --> 00:17:20.039 also to kind of again you know, maybe pay that 351 00:17:20.079 --> 00:17:23.079 gas fee, et cetera. Stable coins I think are the 352 00:17:23.119 --> 00:17:26.559 initial killer app of Web three because it's that true 353 00:17:26.640 --> 00:17:30.279 partnership between the FIAT world in this Web three world. 354 00:17:30.480 --> 00:17:31.759 Yeah, and you know. 355 00:17:31.680 --> 00:17:34.680 As a US citizen, it's a ready made market for 356 00:17:35.079 --> 00:17:38.559 US treasuries in a regulated way, and you can you 357 00:17:38.599 --> 00:17:41.480 can have the pliferation of the US dollar in this 358 00:17:41.599 --> 00:17:44.839 tokenized version again in a regulated manner. That way, you know, 359 00:17:44.880 --> 00:17:47.599 you can keep governments, you know, comfortable, but then also 360 00:17:47.960 --> 00:17:50.359 unlocked the value for citizens. So you know, like, I'm 361 00:17:50.400 --> 00:17:55.799 just thankful that we're at this moment where the real world, 362 00:17:56.000 --> 00:17:57.480 in that Web three world that we've been looking at 363 00:17:57.480 --> 00:17:59.200 all these years, are really starting to merge. 364 00:17:59.559 --> 00:18:02.119 Yeah, it's fascinating, and it's moving at such a rapid pace. 365 00:18:02.240 --> 00:18:04.920 Oh my goodness, I can't imagine when the Clarity Act 366 00:18:05.119 --> 00:18:07.599 is past the amount of innovation that's t hundred. 367 00:18:07.799 --> 00:18:12.720 Because ultimately it's fascinating. There was this notion of everyone 368 00:18:12.799 --> 00:18:15.599 was a renegade and it just was not true, you know, 369 00:18:15.720 --> 00:18:18.000 like like like at the end of the day, you 370 00:18:18.039 --> 00:18:20.599 want sensible regulation. You want to work closely with your 371 00:18:20.640 --> 00:18:23.720 regulatory and government partners, because if we don't have clear 372 00:18:23.799 --> 00:18:26.440 rules of the road, then how do you innovate in 373 00:18:26.480 --> 00:18:29.480 a responsible manner? And you don't want the systemic risk 374 00:18:29.559 --> 00:18:33.839 to just be so residually high that it's unbearable. So 375 00:18:33.960 --> 00:18:37.799 now that we're starting to get this sensible legislation around 376 00:18:37.799 --> 00:18:42.079 the world, now you can build a strategic moat around 377 00:18:42.160 --> 00:18:45.400 how do you execute upon it and then innovate simultaneously? 378 00:18:45.720 --> 00:18:47.279 And then I'll throw one more thing out there to 379 00:18:47.319 --> 00:18:50.039 the viewers. It's not only is it how do you 380 00:18:50.279 --> 00:18:53.720 adhere to the regulations in your particular jurisdiction, but how 381 00:18:53.720 --> 00:18:55.960 do you manage the other regimes et cetera. Because this 382 00:18:56.079 --> 00:18:59.319 is a globally adopted you know, initiative. 383 00:19:00.119 --> 00:19:01.519 So yeah, it's fascinating. 384 00:19:01.680 --> 00:19:03.359 The governments are going to have to align on their 385 00:19:03.480 --> 00:19:07.039 regulations like and figure out how do you traade all 386 00:19:07.039 --> 00:19:07.480 these things. 387 00:19:07.559 --> 00:19:11.119 Yeah, and that's tough, but again that's the fun of it, right, 388 00:19:11.160 --> 00:19:13.319 So how do you partner with your regulators? How do 389 00:19:13.359 --> 00:19:17.440 you help educate them? As more sensible relations come online, 390 00:19:17.480 --> 00:19:20.160 you start to see the hey, okay, well this part 391 00:19:20.200 --> 00:19:21.799 of the world they're using this, this makes sense, So 392 00:19:21.839 --> 00:19:23.640 maybe we could do that. So I think we're still 393 00:19:23.720 --> 00:19:27.680 very early, but at least now we know that the 394 00:19:27.680 --> 00:19:29.880 tailwinds are there, where before it was it's been headwinds 395 00:19:29.880 --> 00:19:31.880 for the you know, the last oh my goodness, FIP 396 00:19:31.880 --> 00:19:32.759 plus year as easily. 397 00:19:32.960 --> 00:19:36.039 Oh yeah, so as much as you can. What's what's 398 00:19:36.079 --> 00:19:38.319 on the roadmap that you can highlight that PayPal is 399 00:19:38.359 --> 00:19:40.039 going to do with crypto or p yus. 400 00:19:39.920 --> 00:19:43.039 Yeah, I mean I can tell you wholeheartedly, you know, 401 00:19:43.119 --> 00:19:45.079