WEBVTT

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<v Speaker 1>Hey, folks. We're at Coinbase's State of Crypto's summit, and

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<v Speaker 1>joining me is Max Brandsberg, who's the VP of Product

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<v Speaker 1>at Coinbase. Max, great to see you, Thanks for having me.

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<v Speaker 1>So Max, tell us bit about yourself and what you

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<v Speaker 1>do at coinbase.

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<v Speaker 2>So I lead our consumer and business products at Coinbase.

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<v Speaker 2>I've been at coinbase for about seven years, which you

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<v Speaker 2>can imagine. Over that time at Coinbase, I've done a

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<v Speaker 2>whole lot of different things. I actually joined to start

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<v Speaker 2>our corporate development and ventures team, initially doing M and

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<v Speaker 2>A and investments we did. We've now done over five

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<v Speaker 2>hundred investments out of our Coinbase Ventures team. But most

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<v Speaker 2>of the time I've been at Coinbase, I've been leading

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<v Speaker 2>our product teams in consumer and business products. That includes

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<v Speaker 2>our main Coinbase app, our Coinbase Advanced platform, Coinbase for Business,

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<v Speaker 2>our payments efforts, our stable coin efforts, and everything facing

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<v Speaker 2>individuals and businesses.

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<v Speaker 1>That's amazing. Seven years in crypto, seven years at Coinbase.

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<v Speaker 1>I was an early coinbas users has seeing the company

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<v Speaker 1>grow and mature, and obviously you having a big hand

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<v Speaker 1>in getting the product up to par with kind of

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<v Speaker 1>matching trad fi, getting the proper on rams for adoption.

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<v Speaker 1>So tell us what are some of the latest features

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<v Speaker 1>that you guys have rolled out.

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<v Speaker 2>Yeah, well, over that time, we've made a lot of progress.

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<v Speaker 2>When I started working on the product, I think we

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<v Speaker 2>had four assets listed for trading and we were available

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<v Speaker 2>in a handful of countries. So over the last several

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<v Speaker 2>years we've accelerated asset listings dramatically. We now have hundreds

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<v Speaker 2>of assets available for trading. We've expanded countries dramatically, so

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<v Speaker 2>we have people trading in over one hundred countries around

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<v Speaker 2>the world. Recently, we've been investing heavily in our advanced

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<v Speaker 2>platform that's Coinbase Advance, which you can access directly in

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<v Speaker 2>the main Coinbase app, and within that advanced platform you

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<v Speaker 2>can trade spot and futures. In the US, you can

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<v Speaker 2>trade CFGC regulated futures of crypto and non crypto futures

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<v Speaker 2>as well. And then outside the US, we have international

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<v Speaker 2>Exchange where you can trade Purpse, and we've continued to

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<v Speaker 2>expand listings for Purpse now have dozens of listings. People

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<v Speaker 2>can trade perps on that platform with the sort of

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<v Speaker 2>leverage and position limits that they're looking for.

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<v Speaker 1>That's amazing. So many products now I'm a user of

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<v Speaker 1>the advance feature and tested it all out and it

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<v Speaker 1>works really great. You know, as far as with on

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<v Speaker 1>chain tools, would Base and much more, Can you tell

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<v Speaker 1>us a bit about what you're working on there and

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<v Speaker 1>when we may see some of these things that may

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<v Speaker 1>be coming.

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<v Speaker 2>Yeah, there's so much happening on chain. It's one of

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<v Speaker 2>the most exciting things I think happening in our space

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<v Speaker 2>is just the pace of development on chain, and a

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<v Speaker 2>lot of this has really picked up since the introduction

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<v Speaker 2>of Layer two networks and fast Layer one networks, but

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<v Speaker 2>Base is really leading the charge with Layer two networks,

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<v Speaker 2>and so with Base with smart contract wallets, which are

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<v Speaker 2>making it easier to interact with on chain protocols, and

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<v Speaker 2>with some of the things we've done with stable coins,

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<v Speaker 2>you can now have really excellent, fully fleshed out on

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<v Speaker 2>chain experiences. So there's a lot happening there. One of

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<v Speaker 2>the things I'm really excited about that we've done with

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<v Speaker 2>coinbase products is we recently launch a crypto backed loan

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<v Speaker 2>product on Coinbase. So within the main Coinbase app, using

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<v Speaker 2>Morpho under the Hood, which is a lending protocol on Base,

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<v Speaker 2>you can borrow up to one million dollars of USDC

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<v Speaker 2>backed by bitcoin, all within the Coinbase app itself. You

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<v Speaker 2>don't need to apply for a loan or go through

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<v Speaker 2>an approval process or wait for it to settle. It's

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<v Speaker 2>just right there, and then you can use that USDC

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<v Speaker 2>to earn up to four and a half percent yield

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<v Speaker 2>on the Coinbase platform, or you can withdraw it, use

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<v Speaker 2>it to pay down a mortgage, buy a car, whatever

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<v Speaker 2>you may need, all without selling that bitcoin. So that's

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<v Speaker 2>been a really powerful product. We just launched it a

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<v Speaker 2>few months ago and already we have more than three

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<v Speaker 2>hundred million dollars in loans outstanding. We're seeing a lot

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<v Speaker 2>of value in that. So it's a good example of

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<v Speaker 2>where on chain finance and the development and open permission

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<v Speaker 2>list protocols combined with the Coinbase app, the safety, the trust,

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<v Speaker 2>the distribution is really combined to create something very special.

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<v Speaker 1>That's amazing Max the fact and I will be using

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<v Speaker 1>that product, by the way. To be transparent, I've talked

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<v Speaker 1>to my wife, like I have some bitcoin and I'm like,

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<v Speaker 1>should I cash it out and pay taxes or borrow

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<v Speaker 1>against it? And we're leaning towards borrowing and to do

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<v Speaker 1>some like upgrades at a house and things like that.

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<v Speaker 1>So that's amazing. And to your point, you can borrow

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<v Speaker 1>us DC, you can cash it out or just leave

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<v Speaker 1>it on the platform to earn yield.

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<v Speaker 2>That's right. That's right. And now coinbase is offering up

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<v Speaker 2>to four and a half percent yields on the platform,

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<v Speaker 2>which is six times the national average savings account yield

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<v Speaker 2>in the US of point six percent. So just holding

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<v Speaker 2>USDC on the platform itself is tremendously valuable. And USDC

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<v Speaker 2>on coinbase is a really incredible product. It's one to

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<v Speaker 2>one backed, it has market leading yields, You can instantly

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<v Speaker 2>trade with it, pay with it, do anything else with it.

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<v Speaker 2>So the the combination of being able to borrow USDC

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<v Speaker 2>against your bitcoin and then hold and use that USDC

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<v Speaker 2>is really powerful.

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<v Speaker 1>Absolutely, And I know a lot of people have a

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<v Speaker 1>long term view on bitcoin and crypto assets and rather

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<v Speaker 1>than have it just sit there, put it to work

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<v Speaker 1>and earn a return.

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<v Speaker 2>Right, that's right. And that's an area that we're really

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<v Speaker 2>pushing on across the coinbas platform. So we want to

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<v Speaker 2>make it coinbase the best place for people to use

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<v Speaker 2>and grow their assets in crypto. So USDC is a

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<v Speaker 2>great example of this. Borrowing is a great example of it.

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<v Speaker 2>Staking is another good example. So you can now steak

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<v Speaker 2>assets on coinbase and earn up to fourteen percent yield

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<v Speaker 2>across eight different assets we support, including Ethereum and Solana,

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<v Speaker 2>and we've seen people just continue to stake and grow

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<v Speaker 2>their assets across all of these different products, from trading

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<v Speaker 2>to saving, to borrowing to staking. So it's coming together

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<v Speaker 2>to create this really powerful platform where people's financial services

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<v Speaker 2>and financial lives are increasingly moving on chain on Coinbase.

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<v Speaker 1>Is that the vision for coinbase more than just a

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<v Speaker 1>crypto exchange, but a finance app, a new modern age

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<v Speaker 1>finance app.

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<v Speaker 2>That's exactly right. I think financial services are being rewritten

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<v Speaker 2>on chain. They're more efficient, they're more rewarding, they're more accessible,

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<v Speaker 2>and so the vision for coinbase is to make those

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<v Speaker 2>financial services accessible to everyone on chain, and I think

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<v Speaker 2>if we can do that, it'll actually create more valuable

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<v Speaker 2>financial services for people all around the world who may

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<v Speaker 2>not be able to access the services that exist today

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<v Speaker 2>in traditional finance.

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<v Speaker 1>Oh, absolutely, are there any plans to add tokenize stocks.

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<v Speaker 1>It seems the puck is heading in the direction everyone's

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<v Speaker 1>trying to tokenize stradfi assets. Any updates you can share there.

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<v Speaker 2>Oh, it's an exciting time in tokenized real world assets.

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<v Speaker 2>I think we just dropped a report, the State of

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<v Speaker 2>Crypto Report, that showed that there's more than twenty billion

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<v Speaker 2>dollars of tokenized real world assets out there, and with

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<v Speaker 2>the developments in the regulatory environment, there's tremendous opportunity to

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<v Speaker 2>really push ahead on tokening real world assets. So we're

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<v Speaker 2>very excited about this space. No updates to share that

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<v Speaker 2>right now, but I think will this space will continue

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<v Speaker 2>to develop, More real world assets will come on chain,

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<v Speaker 2>and they will become more efficient and more accessible because

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<v Speaker 2>of that.

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<v Speaker 1>You know, it's fascinating because it's going to open up

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<v Speaker 1>twenty four to seven truly global markets like trading, no

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<v Speaker 1>more opening and closing bell. It's like a brave new world.

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<v Speaker 1>But also I wonder what that's going to look like

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<v Speaker 1>as well, trading twenty four to seven.

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<v Speaker 2>I think it'll create increased efficiency for everyone, and I

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<v Speaker 2>think particularly I think a lot about retail traders and

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<v Speaker 2>individual users, and the history of trading and markets has

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<v Speaker 2>often disadvantaged retail traders. They've often been behind the institutional traders,

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<v Speaker 2>the market makers, others. They're usually losing out in that

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<v Speaker 2>kind of market where access is limited. And so when

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<v Speaker 2>you think about bringing these asset classes on chain and

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<v Speaker 2>making them accessible to everyone, you're thinking about empowering retail

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<v Speaker 2>traders and creating more financial freedom and more access. So

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<v Speaker 2>I think that that's the world that we're moving towards.

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<v Speaker 2>It will be more efficient, it'll create more access, and

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<v Speaker 2>particularly I think it will really empower individuals.

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<v Speaker 1>Yeah, absolutely, because now I think people who were maybe

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<v Speaker 1>they didn't have the proper on ramp, they couldn't find

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<v Speaker 1>the or they had to be accredited. Now they can

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<v Speaker 1>buy a fraction of a Tesla stock if it's tokenized,

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<v Speaker 1>or whicheverstock they prefer, and then they can put that

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<v Speaker 1>in DeFi if they want to. It just creates so

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<v Speaker 1>many opportunities for folks, that's right.

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<v Speaker 2>And we're also a global platform, so we certainly serve

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<v Speaker 2>customers in the US. That's where we're based and has

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<v Speaker 2>been a hallmark of coin based strategy, but we're very

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<v Speaker 2>much a global company, serving users in more than one

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<v Speaker 2>hundred countries around the world, and in a lot of

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<v Speaker 2>those countries, accessing Tesla stock is really difficult actually, right,

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<v Speaker 2>there's not really platforms that are accessible. It's hard to

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<v Speaker 2>find the right hours, maybe it's costly to actually trade it.

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<v Speaker 2>And so I think as real word assets become tokenized,

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<v Speaker 2>they not only make it easier for people in the

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<v Speaker 2>US or developed markets where it's always been relatively easy

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<v Speaker 2>to access them, but especially in other markets where the

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<v Speaker 2>financial infrastructure is maybe less developed. And it really brings

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<v Speaker 2>that up to par I think with other markets and

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<v Speaker 2>increases access sure.

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<v Speaker 1>And I can say anecdotally in my own pool of

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<v Speaker 1>family and friends, people who are not interested in investing

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<v Speaker 1>before are now very interested because of the token iszed aspect.

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<v Speaker 1>And don't get me wrong, in general as well, because

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<v Speaker 1>investing has gone to the mobile phone. Versus I need

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<v Speaker 1>to go to an office or I need to log

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<v Speaker 1>onto my computer, I could simply do it as a

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<v Speaker 1>click up a button on my phone. So it's just

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<v Speaker 1>this whole new paradigm shift of like how people can

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<v Speaker 1>access markets.

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<v Speaker 2>Yeah, and I think there's a lot of education that

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<v Speaker 2>comes with that. That's something that coinbases. We think about

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<v Speaker 2>making this whole space more accessible. We think about safety

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<v Speaker 2>and security as a really key principle for us, So

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<v Speaker 2>We've integrated with the best banks in the world to

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<v Speaker 2>enable really high quality on and off ramps. We provide

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<v Speaker 2>the right sort of education and security as people are

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<v Speaker 2>joining the platform, and I think that's really important. There's

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<v Speaker 2>a lot of innovation in this space. There's a lot

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<v Speaker 2>of new things coming, and so as we're creating this

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<v Speaker 2>new paradigm for investing and more people are getting access

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<v Speaker 2>to it, I think the sort of safety and trust

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<v Speaker 2>of coinbase is a really important way to help people

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<v Speaker 2>take that next step.

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<v Speaker 1>Absolutely well, Max, I got to get your promise you'll

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<v Speaker 1>come on the podcast one you guys launched the token

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<v Speaker 1>ised stocks product so we could talk about it.

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<v Speaker 2>I would be happy to join you and talk about

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<v Speaker 2>all the new products for launching. We've got a few

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<v Speaker 2>exciting announcements coming later today and so we'd love to

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<v Speaker 2>chat more about this.

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<v Speaker 1>Awesome Max, Thank you so much and looking forward to

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<v Speaker 1>the future updates.

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<v Speaker 2>Thanks for having me.

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<v Speaker 1>Awesome