WEBVTT

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<v Speaker 1>Welcome back to another episode of the XRP podcast. This

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<v Speaker 1>is going to be a special week because it is

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<v Speaker 1>the week of the XRP Las Vegas event. If you

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<v Speaker 1>guys are not going, I want you to extend a

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<v Speaker 1>personal invite get out there to Vegas if you can

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<v Speaker 1>and come by and see me because we will be

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<v Speaker 1>doing a media event there along with a handful of

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<v Speaker 1>different sessions there on stage, covering everything from Domin Phil

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<v Speaker 1>Qualk will also be talking with Hugo. We'll be talking

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<v Speaker 1>with ever North. It's going to be a jam packed week.

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<v Speaker 1>So hopefully you guys get a chance visit the XRP

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<v Speaker 1>Los Vegas dot com website. You guys can jump in

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<v Speaker 1>on that. Listen. I have a big show today because

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<v Speaker 1>we're going to be talking to Zach Rector, who is

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<v Speaker 1>a favorite here on the channel, and we're gonna dive

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<v Speaker 1>into some interesting things, not only the idea of where

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<v Speaker 1>the market could be going, but is this the bottom

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<v Speaker 1>and what is a good portfolio allocation for you? And

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<v Speaker 1>we'll talk about gold XRP obviously and even security. So

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<v Speaker 1>stick around for all that. You guys know what to do.

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<v Speaker 1>Make sure I like and subscribe right now and join

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<v Speaker 1>the XRP tribe. By the way, if you are not

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<v Speaker 1>a member, get in on that. We are ramping up

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<v Speaker 1>the member content here. You have been worn because I

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<v Speaker 1>know everybody always gets a little upset if we do

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<v Speaker 1>a member only but that's the way it works, guys.

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<v Speaker 1>That's what we're trying to do is build a really

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<v Speaker 1>solid membership here. And you know what to do. Just

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<v Speaker 1>click on that little member tag down below. Let's go in.

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<v Speaker 1>Zach Rector, the one and only. How are you, my man?

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<v Speaker 2>You doing fantastic, Paul. It's a pleasure to be back

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<v Speaker 2>on the show, Sir.

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<v Speaker 1>I like, I hated what people call me sir, but

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<v Speaker 1>I appreciate it. At the end of the day, I'll

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<v Speaker 1>call you sir, Sir Zach Rector.

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<v Speaker 2>Oh, you're wearing that beautiful suit, looking good as always,

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<v Speaker 2>and I'm glad that you're going to be down in Vegas.

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<v Speaker 2>Unfortunately I won't able to make it this year, but

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<v Speaker 2>I'm glad that you'll be providing some coverage and give

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<v Speaker 2>some content and don't party down there too hard without me.

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<v Speaker 1>I'll hold up the end. I'll give you a couple

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<v Speaker 1>of shout outs while I'm there. I'll make sure and say, hey,

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<v Speaker 1>go over and check out Zach's YouTube channel, which you

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<v Speaker 1>guys should be doing right now. We'll leave a link

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<v Speaker 1>down below. He does a great job over on YouTube,

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<v Speaker 1>covering a lot of XRP news, but also you get

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<v Speaker 1>into a lot of other digital assets and more economic

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<v Speaker 1>news as well.

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<v Speaker 2>Yeah, so I cover current events and the financial markets broadly,

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<v Speaker 2>of course, focusing on crypto. I think it's still the

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<v Speaker 2>best opportunity for sure. And just so everybody knows where

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<v Speaker 2>my bias is at most of my net worth is

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<v Speaker 2>in digital assets, so yeah, I've positioned myself in that,

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<v Speaker 2>but I do hedge with precious metals. And then we

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<v Speaker 2>just got to keep showing up every day, whether it

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<v Speaker 2>be at our jobs, our businesses, because yeah, we'll talk

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<v Speaker 2>about inflation, but it's not going to get any easier,

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<v Speaker 2>and especially if you don't own these assets that are

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<v Speaker 2>set to appreciate significantly even further.

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<v Speaker 1>Well, and I think the point that people are starting

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<v Speaker 1>to understand is that assets he's the only way out

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<v Speaker 1>of this. Nothing stops his train. Lynn Alden's famous for

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<v Speaker 1>saying that I agree with Lynn on that because it

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<v Speaker 1>is a big issue. Peter Schiff is here though, talking

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<v Speaker 1>about that the stock market is inflation. I'm showing a

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<v Speaker 1>tweet right here, and it's not real value. So and

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<v Speaker 1>he's basically saying, hey, when the dollar loses its value,

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<v Speaker 1>everything appears to rise in price. It's an illusion. I

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<v Speaker 1>have some pushback on that, but obviously he's pointing at

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<v Speaker 1>the whole issue that everybody's getting robbed because of debasement,

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<v Speaker 1>digital assets, gold also in play. I still think securities

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<v Speaker 1>are un angled that everybody should be looking at. It's

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<v Speaker 1>something I still participate in. But what do you think

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<v Speaker 1>about his statement here saying this is just highway robbery

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<v Speaker 1>if you're betting on securities right now.

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<v Speaker 2>I think that the push into stocks is driven by

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<v Speaker 2>people scared of inflation. Basically, if you're not making three

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<v Speaker 2>four five percent on your money, you know you are

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<v Speaker 2>losing and being left behind. And so it's driving investors

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<v Speaker 2>and average Americans to have to speculate right whether you're

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<v Speaker 2>speculating on the S and P five hundred or you're

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<v Speaker 2>betting on sports this past weekend. It's basically the inflation,

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<v Speaker 2>which is from the Federal Reserve and our government, is

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<v Speaker 2>driving everyone to be more speculative, and this market punishes

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<v Speaker 2>you for not being in it. So I think that

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<v Speaker 2>there's a lot of complacency in the stock market right now,

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<v Speaker 2>and it's working out so far, so good, new all

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<v Speaker 2>time highs on the S and P five hundred, despite

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<v Speaker 2>this war going on, despite the private credit crisis, new

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<v Speaker 2>all time highs being printed. But we just actually got

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<v Speaker 2>the worst consumer sentiment rapport ever now. And this shows

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<v Speaker 2>the case shaped economy and the discrepant s between Main

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<v Speaker 2>Street and Wall Street. And so we just have to

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<v Speaker 2>understand that the S and P five hundred being at

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<v Speaker 2>an all time high is not a representation of how

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<v Speaker 2>Americans are feeling on Main Street. And that's the big difference.

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<v Speaker 1>Well, and you kind of look at the two options here,

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<v Speaker 1>I mean, because the argument I think a lot of

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<v Speaker 1>people would have with gold is they say, well, all right,

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<v Speaker 1>it's good for eras, and you know, times when we're

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<v Speaker 1>seeing things like stagflation which could be happening very soon

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<v Speaker 1>and or systemic crisis, which we have seen during two

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<v Speaker 1>thousand and eight twenty twenty, you would think maybe now,

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<v Speaker 1>even though it did have a run up. But the

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<v Speaker 1>big problem with gold, at least my argument has always

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<v Speaker 1>been that once it makes a run it usually goes

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<v Speaker 1>into hibernation for a long period of time, so you

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<v Speaker 1>have to be aware of that. Performance wise, I think

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<v Speaker 1>over the long haul, the S and P five hundred

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<v Speaker 1>is still outperforming gold if you look at long horizons

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<v Speaker 1>and I'm talking about ten plus years. But short term,

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<v Speaker 1>right now, gold has been doing its things. So I

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<v Speaker 1>don't know.

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<v Speaker 2>And for me, it's two different sides of the portfolio.

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<v Speaker 2>Right on offense, you should be in stock. You should

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<v Speaker 2>be in digital assets, maybe even more aggressive if you're

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<v Speaker 2>into private equity, right in those types of securities offerings,

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<v Speaker 2>but you have to have the defensive hedge. It might

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<v Speaker 2>not appreciate as much as the stocks are crypto, but

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<v Speaker 2>it's not intended to. And so I think the problem

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<v Speaker 2>with Peter Schiff and a lot of these guys I

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<v Speaker 2>respect and I listened to a lot of Peter is

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<v Speaker 2>you got to distinguish between two different sides of your portfolio.

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<v Speaker 2>You can't be all in gold, and you also don't

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<v Speaker 2>want to be fully exposed to the stock market. With

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<v Speaker 2>the looming correction, I think that we're all worried about.

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<v Speaker 1>That's the thing I am very concerned about. And with that,

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<v Speaker 1>you're probably going to see some activity on digital assets

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<v Speaker 1>and risk in general. This was an interesting video that

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<v Speaker 1>I want to play right here. Mike Noverret's talking about

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<v Speaker 1>the supply on bitcoin, and the only reason I'm playing

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<v Speaker 1>this is so without you could understand if this happens

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<v Speaker 1>on certain digital assets, what goes on with something like

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<v Speaker 1>an XRP. Let's take a listen. It's interesting.

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<v Speaker 3>US retail has come back period end of story, and

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<v Speaker 3>you see it through the ets, but most of you

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<v Speaker 3>see it through micro strategy sailor the wizard of micro strategy.

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<v Speaker 3>Michael Saylor is back and he is selling stock, and

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<v Speaker 3>he is selling perpetuals, and he is buying bitcoin, and

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<v Speaker 3>his premium is expanding, not contracting. What it means by

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<v Speaker 3>now you're one hundred and thirty times an av. His

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<v Speaker 3>m NAV is one thirty relative to the bitcoin he owns.

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<v Speaker 3>And so he can sell micro strategy and make money,

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<v Speaker 3>you know, create yield, as he says, for his investor.

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<v Speaker 3>He dilutes his new investors are current investors, and he

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<v Speaker 3>delutes his new invent and it's a creative.

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<v Speaker 1>To new investor for old investors.

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<v Speaker 2>And so it's a strategy that he has.

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<v Speaker 3>Almost ah, He's almost the only guy that actually has

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<v Speaker 3>this strategy built in, you.

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<v Speaker 1>Know, all right, So I wanted to pause on that

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<v Speaker 1>for that point. This is what Sailor has done is

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<v Speaker 1>really started to make bitcoin an investment book in general

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<v Speaker 1>outside of just not on the micro strategy, but if

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<v Speaker 1>you look at Stretch, which is the biggest performing asset.

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<v Speaker 1>We just had their CeON last week to talk about this.

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<v Speaker 1>What do you make of these financial instruments? Do you

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<v Speaker 1>look at these at all in consideration?

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<v Speaker 2>Yeah, We've been watching micro Strategy and what they did.

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<v Speaker 2>I saw that you had their CEO on, and I

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<v Speaker 2>think that, you know, it's very innovative. I would just

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<v Speaker 2>push back on the comments from Mike Democrats as far

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<v Speaker 2>as retail being back right. These products are not being

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<v Speaker 2>sold to retail. These are all institutional investors, hedge funds,

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<v Speaker 2>insurance companies, asset managers that are funding and fueling micro Strategy.

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<v Speaker 2>And I think that it is a serious play to

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<v Speaker 2>force a supply shock on bitcoin, the you know, twenty

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<v Speaker 2>one million supply with you know, the current market cap.

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<v Speaker 2>It's possible, it really is. And I think that the

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<v Speaker 2>institutional institutionalization of bitcoin has been something that a lot

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<v Speaker 2>of bitcoiners have pushed back on, but I would argue

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<v Speaker 2>that it's the reason why bitcoin traded above one hundred

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<v Speaker 2>thousand this cycle. Without the ETFs, without the institutional spin

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<v Speaker 2>financial rappers, bitcoin won't be, you know, up at the

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<v Speaker 2>level that it's at in my opinion, So the bitcoiners

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<v Speaker 2>have to have a trade off. You know, a lot

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<v Speaker 2>of pure bitcoiners don't like this, But do you like

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<v Speaker 2>one hundred k bitcoin? You know, do you want five

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<v Speaker 2>hundred k bitcoin? The only way that that happens, in

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<v Speaker 2>my opinion, is institutional for supply. I Shock, micro Strategy

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<v Speaker 2>and Sailor have been pretty open about their objectives in

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<v Speaker 2>doing that, and they're not the only ones. We'll see

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<v Speaker 2>how successful they are. But yeah, I think that the

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<v Speaker 2>only thing I pushed back is that retail, retail's not

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<v Speaker 2>buying that product, retails not fueling that rally. That's the

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<v Speaker 2>only pushback I'd give you.

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<v Speaker 1>Look at this kind of supports your your position right there.

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<v Speaker 1>Twenty six following the same book as twenty five. The

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<v Speaker 1>difference is traders now have become much more immune to

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<v Speaker 1>the extreme rhetoric that we've seen, you know, from the

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<v Speaker 1>Trump administration, but also just in general of the macro

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<v Speaker 1>and they're starting to respond differently. So to your point,

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<v Speaker 1>institutional is playing a completely different playbook here and we're

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<v Speaker 1>seeing these, you know, really quickly back to all time

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<v Speaker 1>highs in terms of the SPX. Do you buy this

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<v Speaker 1>right now or do you feel we are in for

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<v Speaker 1>a major re tracement.

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<v Speaker 2>So I have no interest in touching the S and

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<v Speaker 2>P five hundred because on the risk on side of

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<v Speaker 2>my portfolio, if I'm gonna play it risky, I'm gonna

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<v Speaker 2>be shooting for hitting some multiples in the digital asset space.

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<v Speaker 2>You know, I'm trying to hit a three to five

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<v Speaker 2>x on you know, half a dozen to a dozen

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<v Speaker 2>crypto digital asset positions that I have. I Am not

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<v Speaker 2>trying to squeeze out another ten twenty percent out of

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<v Speaker 2>the S and P five hundred, even over the next

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<v Speaker 2>few years. That's just not of interest of me, because

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<v Speaker 2>you have just as much downside risk almost right you know,

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<v Speaker 2>some of our cryptos are down xrps down seventy percent

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<v Speaker 2>from the all time high last year, or at least

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<v Speaker 2>the full swing down was. So you don't have seventy

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<v Speaker 2>percent downside risk in the S and P five hundred

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<v Speaker 2>over the course of you know, nine months like you

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<v Speaker 2>do in crypto. Sure, But like I said, if I'm

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<v Speaker 2>on the risk on side of my portfolio, I'm there

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<v Speaker 2>to hit it big, not squeeze out five to ten

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<v Speaker 2>percent out of the S and P five hundred. I'm

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<v Speaker 2>a thirty one year old though. Do you think far

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<v Speaker 2>the risk curve?

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<v Speaker 1>Yeah, big difference there in terms of time horizon. Do

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<v Speaker 1>you think that we are in or nearing the bottom

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<v Speaker 1>for this for the risk asset side of things digital assets?

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<v Speaker 2>Yeah. I think that the inflows that we saw into AI,

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<v Speaker 2>the hyperscalers, this was what drove the S and P

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<v Speaker 2>five hundred to new all time hus and continues to

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<v Speaker 2>is because people don't want to be left behind on

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<v Speaker 2>that train, the AI train, the build out there. But eventually,

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<v Speaker 2>and it looks like we're kind of close to that

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<v Speaker 2>coming into correction. Is it a full blown bubble that

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<v Speaker 2>pops and everything goes to zero. Absolutely not. This is

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<v Speaker 2>the future. There's still going to be a lot of

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<v Speaker 2>big winners, but we're correcting, and that's what's happening and

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<v Speaker 2>unraveling in the private credit crisis right now. You know,

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<v Speaker 2>David Sachs and the all in guys just talked about

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<v Speaker 2>this on their most recent podcast about software as a

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<v Speaker 2>service being repriced and private credit and even banks that

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<v Speaker 2>have their business development credit facilities, they're exposed here. And

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<v Speaker 2>it's the same thing that they're doing in real estate

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<v Speaker 2>where it was extend and pretend yep, where they were

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<v Speaker 2>extending out the mortgages, extending out the loans. Same thing

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<v Speaker 2>that was happening in the commercial real estate space. This

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<v Speaker 2>is now happening in the private credit crisis. That's real.

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<v Speaker 2>If you talk to a lot of the private credit

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<v Speaker 2>guys at the top, they're saying, it's nothing to worry about.

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<v Speaker 2>This isn't systemic. When did we hear that last time? Right?

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<v Speaker 3>Yeah?

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<v Speaker 2>Duringa nine. Yeah, and so there's definitely issues. Not everybody

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<v Speaker 2>gets wiped out, but you know, I think that as

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<v Speaker 2>this tops and it starts to correct, people will say, Okay,

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<v Speaker 2>we've squeezed as much juice as we're going to get

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<v Speaker 2>out of this one, and then that rotation occurs. The

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<v Speaker 2>Russell two thousands already kind of sending those signals that

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<v Speaker 2>there's an appetite to start the quotation yeah to digital assets.

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<v Speaker 1>Well, and I think that's the point we're looking at

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<v Speaker 1>here in terms of timing, because you have had a

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<v Speaker 1>very accelerated run in this last year on the S

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<v Speaker 1>and P. But at the same time, risk assets crypto

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<v Speaker 1>in general have suffered dramatically. If you got in literally

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<v Speaker 1>when Trump got into office, you're down significantly, no matter

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<v Speaker 1>what asset you're looking at. So it is something that

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<v Speaker 1>I think is on the fence right now in terms

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<v Speaker 1>of what happens next. So to your point, if private

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<v Speaker 1>credit becomes a time bomb and we look at an

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<v Speaker 1>S and P, possibly that could see a retracement. The

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<v Speaker 1>capital has got to go into you would think risk,

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<v Speaker 1>but at the same time it could also go into

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<v Speaker 1>just being you know, not in the market. So setting

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<v Speaker 1>on sidelines, what's the probability of that?

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<v Speaker 2>Do you think, Well, there's a good probability, but I

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<v Speaker 2>don't think it lasts long. I think that you know,

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<v Speaker 2>my general thesis right now, Paul, is we haven't seen

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<v Speaker 2>the climax of this conflict in the Middle East. You know,

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<v Speaker 2>that's not one of our topics for today. But that's

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<v Speaker 2>the big risk right now and the reason why crypto

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<v Speaker 2>can't catch a bid. The last thing that people are

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<v Speaker 2>thinking about right now is digital assets. When they're worried

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<v Speaker 2>about the war, they're worried about inflation. Six dollars a

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<v Speaker 2>gallon diesel for my truck five dollars a gallon gas. Yeah,

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<v Speaker 2>you know, the last thing we're going to do is

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<v Speaker 2>bid on some crypto. But I think that once the

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<v Speaker 2>climax of this conflict has passed, then the rotation starts. Now,

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<v Speaker 2>during that climax you would see going from stocks back

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<v Speaker 2>into treasuries. That real climax of the event a lot

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<v Speaker 2>of fear, and it's going to be short lived. And

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<v Speaker 2>I think that you get a V shaped recovery just

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<v Speaker 2>like you got after twenty twenty. You know that's going

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<v Speaker 2>to be very short lived, and then it'll be back

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<v Speaker 2>to risk gone because people will feel fine bidding on crypto,

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<v Speaker 2>even bidding back into stocks again. But as as we

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<v Speaker 2>get past that event, then we can start to see

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<v Speaker 2>inflows pouring again. I think once that fear has subsided.

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<v Speaker 1>Yeah. I think the thing I'm concerned is the tailwinds

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<v Speaker 1>of all these potential issues happening all at one time.

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<v Speaker 1>Whether you look at the energy pressure that we're seeing

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<v Speaker 1>coming out of the Middle East, you look at private credit, obviously,

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<v Speaker 1>the situation with the fed you just had this morning.

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<v Speaker 1>I'm showing on screen right here, Bitcoin just flash crashed

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<v Speaker 1>to seventy seven. That was sixty eight million in longs

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<v Speaker 1>liquidated in an hour. I know that's not a lot,

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<v Speaker 1>but the point is is that you're going to get

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<v Speaker 1>these kind of moves and you could see that, all right.

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<v Speaker 1>The problem in their statement is right here is no

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<v Speaker 1>clear catalyst and there was no headline that really caused this.

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<v Speaker 1>I think it is the cumulative nature of the macro

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<v Speaker 1>pressure that is playing into this, into the mindsets of

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<v Speaker 1>a lot of these traders, because to be honest, all

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<v Speaker 1>this is really sentiment and now you're in the sentiment

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<v Speaker 1>of you know, really the biggest people out there in

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<v Speaker 1>terms that are making a lot of the moves in

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<v Speaker 1>whether it's institutional or even in the crypto market right now.

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<v Speaker 1>So I agree with you. I think we're yeah, we

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<v Speaker 1>still got time, folks.

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<v Speaker 2>You know there's still opportunity in this market. Okay, it's

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<v Speaker 2>it's for me, right. Most of my portfolio's long crypto

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<v Speaker 2>long XRP as most of my net worth. But in

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<v Speaker 2>the past couple of weeks, what I've done to you know,

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00:17:33.839 --> 00:17:38.119
<v Speaker 2>basically call out the bluff of peace talks. The first round,

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<v Speaker 2>I went long oil leading into that week. Oil got

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<v Speaker 2>smacked back down because peace talks were going to take

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<v Speaker 2>place in Pakistan, right, And my bet was simple, we

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<v Speaker 2>weren't going to get peace and that we weren't going

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<v Speaker 2>to get any you know, substantial peace agreement from that,

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<v Speaker 2>and we didn't, and so I made about three percent

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<v Speaker 2>profit on that oil. Long as oil I'd shot up

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<v Speaker 2>to one hundred and five five dollars when the Sunday

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<v Speaker 2>futures opened up because the peace talks failed. I tried

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<v Speaker 2>to do the same thing last week. Oil had closed

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<v Speaker 2>off at eighty four on Friday. I set my bid

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<v Speaker 2>at eighty five, and when the Sunday futures opened up,

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<v Speaker 2>it hopped right up to eighty eight dollars. So I

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<v Speaker 2>missed my trade, and then we went back up to

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<v Speaker 2>ninety eight ninety nine dollars per barrel on oil last week.

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<v Speaker 2>So I failed on that second one, but the idea

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<v Speaker 2>was right and then currently right now, just so everybody

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<v Speaker 2>knows my bias, I am in a Bitcoin short, so

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<v Speaker 2>my bet was that we would reject off the eighty

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<v Speaker 2>k level. I went short bitcoin last week and I'm

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<v Speaker 2>still holding that and so it's a way for me

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<v Speaker 2>to hedge my ridiculously long position to make to capture

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<v Speaker 2>some profit during this volatility and the chaos in the war.

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<v Speaker 1>Right Well, and you've got some other things happening right

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<v Speaker 1>now with Ripple that I think will start to set

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<v Speaker 1>up a lot of this. Korea's k Bank entered into

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<v Speaker 1>a partnership with Ripple just this week, so they're going

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<v Speaker 1>to test some banks testing guess what cross border remittance is,

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<v Speaker 1>including the UAE and Thailand, So they're starting to implement this.

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<v Speaker 1>I think the real question is once that clarity comes through,

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<v Speaker 1>how much of this is going to put pressure on

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<v Speaker 1>these countries like Korea, the UAE, Thailand to where we

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<v Speaker 1>see the US banks trying to make it on the

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<v Speaker 1>world stage now that they can possibly do cross border payment,

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<v Speaker 1>because most likely Ripple's going to announce some pretty big

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<v Speaker 1>banking partnerships once this is done.

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<v Speaker 2>What do you think, Yeah, the only place that they

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<v Speaker 2>didn't continue growing during the lawsuit was in the United

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<v Speaker 2>States of America, at least not visibly. I think that

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<v Speaker 2>a lot of work continued under the radar, but that

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<v Speaker 2>lawsuit did hamper growth in the States. They continued to

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<v Speaker 2>you know, see on demand liquidity grow into tens of

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<v Speaker 2>billions of volume outside of the United States, right, but

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<v Speaker 2>lawsuit being completed helped, you know, the case for XRP

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<v Speaker 2>and helped ripple We've definitely seen some US partnership start

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<v Speaker 2>to come through. But I think that the XRP community

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<v Speaker 2>needs to understand that even if we know XRP is

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<v Speaker 2>not a security, the banks and the institutions don't have

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<v Speaker 2>the rules of the road for how they can use it.

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<v Speaker 2>And until they do, you're not going to see the

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<v Speaker 2>institutional liquidity at scale. And so, you know, I think

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<v Speaker 2>that that's been a big point of confusion in the

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<v Speaker 2>community is we're wondering, well, why can't XRPC mass adoption

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<v Speaker 2>right now we have clarity, we don't need the law. Now. Yeah,

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<v Speaker 2>you have clarity on the commodity designation that it's not

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<v Speaker 2>a security, but what can the banks and institutions do

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<v Speaker 2>with it? Exactly So, and the people that I'm talking to,

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<v Speaker 2>the comments that I'm reading, we are so frustrated with

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<v Speaker 2>DC and the DC dance not getting this deal done

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<v Speaker 2>with clarity. I know you've been doing a great job

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<v Speaker 2>reporting on all of it, but it's like, it's great

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<v Speaker 2>for US content creators because every day it's a you know,

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00:21:02.599 --> 00:21:04.960
<v Speaker 2>it looks like it's going to pass. Next day it's

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<v Speaker 2>pushed out again. They're incredibly frustrating for all of us.

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<v Speaker 2>But just understand the banks would be putting up such

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<v Speaker 2>a fight if this wasn't worth it. So think of that.

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<v Speaker 2>You know, new incoming fed Shair Kevin worsh has exposure

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<v Speaker 2>to digital assets. Why don't you the banks are putting

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<v Speaker 2>up this big of a fight over digital assets. Why

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<v Speaker 2>wouldn't you have some interest and exposure here? You know,

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<v Speaker 2>So it's frustrating, it is just know that that is

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<v Speaker 2>acknowledgment of how important this industry is.

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<v Speaker 1>Oh for sure. Well, and the point we were making

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<v Speaker 1>there is when you look at the advancement outside the US,

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<v Speaker 1>like what was happening in your Korea, then you look

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<v Speaker 1>at the potential here for the US banks, it is

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<v Speaker 1>going to your point, it is going to take clarity

395
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<v Speaker 1>to relevant to create some relevancy here for the US

396
00:21:54.160 --> 00:21:58.039
<v Speaker 1>infrastructure to play because they need the regulation to do it.

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00:21:58.640 --> 00:22:03.839
<v Speaker 1>So it's surprising sometimes when the banks and I often

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<v Speaker 1>wonder if this is just a big ploy by the

399
00:22:06.200 --> 00:22:08.440
<v Speaker 1>banks because This is going to be good for the

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00:22:08.480 --> 00:22:12.440
<v Speaker 1>banks in the long run, the smart ones. So that

401
00:22:13.160 --> 00:22:16.400
<v Speaker 1>starts to make me think is there something else underlying

402
00:22:16.519 --> 00:22:19.519
<v Speaker 1>here that they're waiting for to get this done the

403
00:22:19.599 --> 00:22:22.519
<v Speaker 1>right way? I don't know. Hey, listen, this is an

404
00:22:22.599 --> 00:22:27.480
<v Speaker 1>interesting state release right here by smoke. Let me share

405
00:22:27.519 --> 00:22:29.079
<v Speaker 1>this over to you guys. You can kind of see

406
00:22:29.079 --> 00:22:32.680
<v Speaker 1>this one right here. Ribels XRPL patent blocks rivals from

407
00:22:32.720 --> 00:22:36.079
<v Speaker 1>developing comparable blockchain software. What he's talking about is Swift

408
00:22:36.640 --> 00:22:40.279
<v Speaker 1>cannot replicate the XRP ledger, so the only biable option

409
00:22:40.519 --> 00:22:43.839
<v Speaker 1>is to integrate. So what do you think about this?

410
00:22:44.240 --> 00:22:52.039
<v Speaker 1>There is a there is actually a full on patent

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<v Speaker 1>on this, you know, when it comes down to it.

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00:22:53.960 --> 00:22:56.759
<v Speaker 1>But do you think this is I mean, because remember

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<v Speaker 1>that Swift is messaging only where XRP Ledger is messaging

414
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<v Speaker 1>and settlement, So that's a different Those are two different

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00:23:06.039 --> 00:23:09.799
<v Speaker 1>products completely, you know. So do you think that that

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00:23:10.079 --> 00:23:12.759
<v Speaker 1>even bothers Swift, are they just going to continue on

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00:23:12.799 --> 00:23:16.880
<v Speaker 1>their model of message only? Yeah?

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<v Speaker 2>I think that they're going to leave the settlement to

419
00:23:18.680 --> 00:23:23.440
<v Speaker 2>the clearing houses that have been doing it for decades, right,

420
00:23:23.799 --> 00:23:27.039
<v Speaker 2>They're going to stick to messaging. That messaging is going

421
00:23:27.079 --> 00:23:30.519
<v Speaker 2>to get faster, and I think that they'll be connected

422
00:23:30.559 --> 00:23:32.720
<v Speaker 2>to a lot of these blockchains. And I've always thought

423
00:23:32.720 --> 00:23:35.519
<v Speaker 2>this Swift, we kind of have a blockchain agnostic approach

424
00:23:36.000 --> 00:23:39.119
<v Speaker 2>like many of these bigger institutions are. They don't want

425
00:23:39.119 --> 00:23:41.759
<v Speaker 2>to stick their neck out and pick any one blockchain

426
00:23:41.799 --> 00:23:44.559
<v Speaker 2>at this early in the game, but they want to

427
00:23:44.680 --> 00:23:47.160
<v Speaker 2>understand multiple I mean, look at Franklin Templeton. I know

428
00:23:47.200 --> 00:23:49.960
<v Speaker 2>you've had some of their people on the show. They've

429
00:23:50.000 --> 00:23:53.640
<v Speaker 2>done such a great job of running infrastructure on multiple chains,

430
00:23:54.359 --> 00:23:59.119
<v Speaker 2>selling multiple ETFs for different cryptos, and I think that

431
00:23:59.119 --> 00:24:01.200
<v Speaker 2>that's going to be the pro of Swift as well.

432
00:24:01.240 --> 00:24:04.559
<v Speaker 2>And you know, to your point, we looked at this

433
00:24:04.640 --> 00:24:08.799
<v Speaker 2>a few years ago. The ODL patent that Ripple has

434
00:24:09.400 --> 00:24:13.559
<v Speaker 2>really secures that technology. So now it's just a matter

435
00:24:13.599 --> 00:24:16.440
<v Speaker 2>of getting adoption. Like they have the patent for that

436
00:24:16.559 --> 00:24:20.119
<v Speaker 2>flow and that technology is just a matter of getting

437
00:24:20.119 --> 00:24:22.839
<v Speaker 2>an adoption. But the most recent tests that we saw

438
00:24:22.880 --> 00:24:26.440
<v Speaker 2>out of Japan where they showed that payments were sixty

439
00:24:26.480 --> 00:24:32.000
<v Speaker 2>percent cheap, are using XRP versus Swift plus. Like you said,

440
00:24:32.039 --> 00:24:34.960
<v Speaker 2>you just don't have the settlement occurring at all in

441
00:24:35.000 --> 00:24:39.359
<v Speaker 2>the Swift messaging, So it's tough to see how Swift

442
00:24:39.440 --> 00:24:43.240
<v Speaker 2>kind of maintains any sort of relevancy in this future

443
00:24:43.240 --> 00:24:47.480
<v Speaker 2>where messaging and settlement are tied into one. That's what

444
00:24:47.519 --> 00:24:49.720
<v Speaker 2>the ISO two hundred and twenty two messaging standard was

445
00:24:49.759 --> 00:24:54.240
<v Speaker 2>all about, was to make the payments and the messages

446
00:24:54.319 --> 00:24:59.559
<v Speaker 2>for them more data rich and that allows Yeah.

447
00:24:59.200 --> 00:25:02.400
<v Speaker 1>Yeah, it's important to know too that. Remember, liquidity is

448
00:25:02.440 --> 00:25:05.400
<v Speaker 1>still a major part of this as well, where if

449
00:25:05.440 --> 00:25:09.519
<v Speaker 1>you route through Swift, you're still looking at pre funded accounts.

450
00:25:09.559 --> 00:25:13.559
<v Speaker 1>You know, nostro vostro scenario plays into where versus like

451
00:25:13.640 --> 00:25:16.839
<v Speaker 1>on XRP as a bridge or use it where you

452
00:25:16.839 --> 00:25:19.640
<v Speaker 1>know XRPL would be using XRP as a bridge. So

453
00:25:20.279 --> 00:25:23.400
<v Speaker 1>now you're getting on on on demand liquidity, which is

454
00:25:23.759 --> 00:25:28.039
<v Speaker 1>conservably faster compared to what is it, one to three

455
00:25:28.119 --> 00:25:30.559
<v Speaker 1>or four days right now, even though I think they're

456
00:25:30.680 --> 00:25:32.920
<v Speaker 1>trying to improve that, I just don't know.

457
00:25:33.680 --> 00:25:36.599
<v Speaker 2>And the client doesn't even have to touch XRP. They

458
00:25:36.599 --> 00:25:39.599
<v Speaker 2>can exactly go to Ripple directly. Ripple will handle the

459
00:25:39.640 --> 00:25:43.400
<v Speaker 2>flow and if they want to receive tie Bot on

460
00:25:43.440 --> 00:25:44.960
<v Speaker 2>the other end exactly. That's it.

461
00:25:45.519 --> 00:25:48.799
<v Speaker 1>Yeah, for sure, that's that I think is the reality

462
00:25:48.880 --> 00:25:54.279
<v Speaker 1>check that we are going to see. I think Swift

463
00:25:54.440 --> 00:25:58.599
<v Speaker 1>and Ripple dice up the market into what percentage, I

464
00:25:58.640 --> 00:26:01.559
<v Speaker 1>don't know, because I think they'll will still be the

465
00:26:01.599 --> 00:26:05.680
<v Speaker 1>old stalwarts of the industry that want to use Swift,

466
00:26:06.359 --> 00:26:08.519
<v Speaker 1>and as Ripple makes more of a play. I know

467
00:26:08.599 --> 00:26:11.240
<v Speaker 1>Brad has said fourteen percent. I think it's much larger.

468
00:26:11.279 --> 00:26:13.720
<v Speaker 1>I think he I'm more aggressive. I feel like it's

469
00:26:13.720 --> 00:26:15.400
<v Speaker 1>probably going to be twenty to thirty percent of the

470
00:26:15.440 --> 00:26:19.640
<v Speaker 1>market of Swift, which is significant, you know, in terms

471
00:26:19.640 --> 00:26:24.160
<v Speaker 1>of settlement fees. So all this is good for XRP

472
00:26:24.839 --> 00:26:25.359
<v Speaker 1>for sure of.

473
00:26:25.920 --> 00:26:28.319
<v Speaker 2>Five to six trillion daily. If we just get a

474
00:26:28.319 --> 00:26:30.960
<v Speaker 2>little sliver of that, Pietz, we'll be doing all.

475
00:26:30.920 --> 00:26:34.759
<v Speaker 1>Right, Yeah, no problem, let's go there. What do you

476
00:26:34.799 --> 00:26:37.680
<v Speaker 1>make of this? Right here? This is Tom Lee saying

477
00:26:38.039 --> 00:26:42.519
<v Speaker 1>that bitcoin and crypto has bottomed and it's about to

478
00:26:42.559 --> 00:26:45.400
<v Speaker 1>go parabolic right now? What do you think?

479
00:26:46.519 --> 00:26:50.200
<v Speaker 2>We're very close, Like I said, until the climax of

480
00:26:50.240 --> 00:26:53.799
<v Speaker 2>this conflict has passed, I hesitate on saying the bottoms in.

481
00:26:54.920 --> 00:26:56.720
<v Speaker 2>I am not comfortable enough to say that we're going

482
00:26:56.759 --> 00:27:00.240
<v Speaker 2>to go see a new low. I just don't feel

483
00:27:00.240 --> 00:27:03.960
<v Speaker 2>comfortable putting out that call until we see the climax

484
00:27:03.960 --> 00:27:06.960
<v Speaker 2>of this conflict, and not to get too deep into

485
00:27:06.960 --> 00:27:10.359
<v Speaker 2>the geopolitics, but we're kind of into it so far

486
00:27:10.400 --> 00:27:13.960
<v Speaker 2>that I think we have to commit to the regime change,

487
00:27:14.359 --> 00:27:18.319
<v Speaker 2>whether that involves boots on the ground, whatever that entails.

488
00:27:18.759 --> 00:27:21.119
<v Speaker 2>That's the climax of the conflict that I'm talking about,

489
00:27:21.559 --> 00:27:23.440
<v Speaker 2>and I just worry that that could be one last

490
00:27:24.440 --> 00:27:27.640
<v Speaker 2>catalyst that spooks the market to getting close to a

491
00:27:27.720 --> 00:27:29.839
<v Speaker 2>double bottom. You know, is x aren't going to go

492
00:27:29.920 --> 00:27:32.839
<v Speaker 2>back below a dollar, but right right, don't think going

493
00:27:32.880 --> 00:27:37.440
<v Speaker 2>on screen, Yeah, Bitcoin, the bottom at sixty k probably

494
00:27:37.480 --> 00:27:39.759
<v Speaker 2>will hold. Like it's going to have to be a

495
00:27:39.799 --> 00:27:42.400
<v Speaker 2>big one to get us below those levels because now

496
00:27:42.440 --> 00:27:45.799
<v Speaker 2>that we've had that accumulation in this range, and I've

497
00:27:45.799 --> 00:27:48.640
<v Speaker 2>been talking about front running a dollar for the past

498
00:27:48.880 --> 00:27:53.079
<v Speaker 2>two months, telling my community where my buy orders are at,

499
00:27:53.279 --> 00:27:56.079
<v Speaker 2>which is right above a dollar, right above a dollar twenty.

500
00:27:56.559 --> 00:27:58.440
<v Speaker 2>So I'll be front running a dollar all the way

501
00:27:58.480 --> 00:28:01.920
<v Speaker 2>down to that level if this event does happen as

502
00:28:02.000 --> 00:28:06.640
<v Speaker 2>I think it will. But then after that, absolutely absolutely,

503
00:28:06.680 --> 00:28:10.920
<v Speaker 2>As I said earlier, once the fear of a world

504
00:28:10.960 --> 00:28:16.519
<v Speaker 2>war six dollars Diesel four hundred dollars grocery bills. A

505
00:28:16.599 --> 00:28:18.240
<v Speaker 2>friend of you guys with families, you might know what

506
00:28:18.279 --> 00:28:21.759
<v Speaker 2>I'm talking about. Oh yeah, Once that fear subsides, then

507
00:28:21.759 --> 00:28:23.799
<v Speaker 2>we can start to catch a bid again. We need

508
00:28:23.839 --> 00:28:26.880
<v Speaker 2>interest rates to come down to and that path has

509
00:28:26.920 --> 00:28:30.599
<v Speaker 2>been cleared with fedcher Worsh probably being confirmed this week.

510
00:28:31.160 --> 00:28:36.480
<v Speaker 2>You thinks are going to come round? Oh yeah, yeah, yeah.

511
00:28:36.480 --> 00:28:39.200
<v Speaker 2>I think he's gonna play ball with Trump. I think

512
00:28:39.240 --> 00:28:42.240
<v Speaker 2>the idea of FED independence as a joke, whether we're

513
00:28:42.240 --> 00:28:45.519
<v Speaker 2>talking about too late Pal or whether we're talking about

514
00:28:45.599 --> 00:28:48.759
<v Speaker 2>Worsh working with President Trump, and so I think he's

515
00:28:48.799 --> 00:28:50.680
<v Speaker 2>going to come into playball. And the other thing is

516
00:28:51.200 --> 00:28:54.319
<v Speaker 2>watch what they do, not what they say. The balance

517
00:28:54.319 --> 00:28:56.359
<v Speaker 2>sheet of tea bills for the Federal Reserve is already

518
00:28:56.400 --> 00:28:58.720
<v Speaker 2>exceeding the level it was at after twenty twenty and

519
00:28:58.759 --> 00:29:02.119
<v Speaker 2>twenty one. Ye, so the money printers already going burr.

520
00:29:02.119 --> 00:29:05.480
<v Speaker 2>It's just being done in a different fashion. And look

521
00:29:05.480 --> 00:29:09.039
<v Speaker 2>at the Treasury. The Treasury's conducted its largest buyback in

522
00:29:09.160 --> 00:29:12.599
<v Speaker 2>history about three four times now, which is fifteen billion

523
00:29:12.640 --> 00:29:15.720
<v Speaker 2>of T bills bought back in a single day. And

524
00:29:15.759 --> 00:29:17.960
<v Speaker 2>they didn't just do that once or twice they've done it,

525
00:29:18.000 --> 00:29:21.559
<v Speaker 2>I think three or four times now, over one hundred

526
00:29:21.640 --> 00:29:24.359
<v Speaker 2>billions since the beginning of December when they said they

527
00:29:24.720 --> 00:29:27.960
<v Speaker 2>had ended quantitative tightening and they were gonna not start

528
00:29:28.039 --> 00:29:31.759
<v Speaker 2>Qwe remember, Paul, do not call it quey, Paul, it's

529
00:29:32.039 --> 00:29:33.480
<v Speaker 2>treasury reserve management.

530
00:29:33.720 --> 00:29:34.000
<v Speaker 1>Yep.

531
00:29:34.319 --> 00:29:35.200
<v Speaker 2>That's the same effect.

532
00:29:35.720 --> 00:29:39.440
<v Speaker 1>You can call it whatever you want. It's the same thing. Yeah.

533
00:29:39.759 --> 00:29:42.599
<v Speaker 2>It's like, you need to own these assets as much

534
00:29:42.599 --> 00:29:45.680
<v Speaker 2>as possible, and you also need to understand that inflation's

535
00:29:45.720 --> 00:29:49.480
<v Speaker 2>not going away, so the fear of the war being

536
00:29:49.519 --> 00:29:54.079
<v Speaker 2>over is gonna pass. I don't expect inflation to go

537
00:29:54.119 --> 00:29:54.880
<v Speaker 2>away though.

538
00:29:56.119 --> 00:29:59.599
<v Speaker 1>What Okay, So well, for sure, I think this is

539
00:29:59.640 --> 00:30:03.240
<v Speaker 1>something that we're going to be probably seeing accelerated inflation

540
00:30:03.319 --> 00:30:05.559
<v Speaker 1>for quite some time. FED I think has to deal

541
00:30:05.640 --> 00:30:07.200
<v Speaker 1>with the fact that we are not going to be

542
00:30:07.279 --> 00:30:10.799
<v Speaker 1>hitting that two percent at some point in the future.

543
00:30:11.440 --> 00:30:14.720
<v Speaker 1>Whether we get back close, you know, to say the

544
00:30:14.759 --> 00:30:16.720
<v Speaker 1>new stable rate is two and a half or three,

545
00:30:17.200 --> 00:30:19.519
<v Speaker 1>that would be significant. If we hit three, that would

546
00:30:19.519 --> 00:30:23.359
<v Speaker 1>be astronomical in terms of impact on the US. So

547
00:30:24.400 --> 00:30:26.000
<v Speaker 1>I don't know. This is going to be a tough one,

548
00:30:26.039 --> 00:30:27.640
<v Speaker 1>for sure. I want to take a minute, guys and

549
00:30:27.759 --> 00:30:32.160
<v Speaker 1>just invite you to join the Baron Market Edge private

550
00:30:32.240 --> 00:30:35.160
<v Speaker 1>member group. You guys can do that by just clicking

551
00:30:35.160 --> 00:30:37.880
<v Speaker 1>the link down in our description. This is your insider's

552
00:30:38.079 --> 00:30:41.319
<v Speaker 1>edge to the AI and crypto money revolution, which is

553
00:30:41.400 --> 00:30:44.839
<v Speaker 1>what we really focus on here on PBN. This is

554
00:30:44.880 --> 00:30:48.160
<v Speaker 1>additional research that I do along with our team, and

555
00:30:48.160 --> 00:30:51.240
<v Speaker 1>we have a pretty significant team on our research around

556
00:30:51.279 --> 00:30:54.000
<v Speaker 1>not only what guides our episodes, but a lot of

557
00:30:54.000 --> 00:30:57.200
<v Speaker 1>that research gets built into more content than I drop

558
00:30:57.279 --> 00:31:00.079
<v Speaker 1>here on the Baron Market Edge. We do market trends

559
00:31:00.079 --> 00:31:03.519
<v Speaker 1>and sentiment analysis, which can be anything from tokens to

560
00:31:03.920 --> 00:31:07.480
<v Speaker 1>all sorts of strategies. This of course will also guide

561
00:31:07.559 --> 00:31:10.240
<v Speaker 1>you over to our Telegram group and we give this

562
00:31:10.279 --> 00:31:14.279
<v Speaker 1>as elite community access. You get bonus content over there,

563
00:31:14.279 --> 00:31:18.720
<v Speaker 1>including tax guides as well as different kinds of asset

564
00:31:18.799 --> 00:31:22.240
<v Speaker 1>guides out there that we drop all the time. This

565
00:31:22.359 --> 00:31:25.440
<v Speaker 1>is your ten year vision in action. All you have

566
00:31:25.519 --> 00:31:27.960
<v Speaker 1>to do, of course, is just hit that little subscribe

567
00:31:27.960 --> 00:31:30.559
<v Speaker 1>button or join the community and get in on it.

568
00:31:30.559 --> 00:31:33.039
<v Speaker 1>It's absolutely free, it doesn't cost you a thing, so

569
00:31:33.119 --> 00:31:36.920
<v Speaker 1>check it out. Talk about stable coins because you look

570
00:31:36.960 --> 00:31:44.759
<v Speaker 1>at RLUSD versus USDC and whether or not RLUSD could

571
00:31:44.759 --> 00:31:47.880
<v Speaker 1>win the stable coin race because there's a lot of

572
00:31:47.920 --> 00:31:52.000
<v Speaker 1>activity right now in the stable coins, most likely because

573
00:31:52.039 --> 00:31:53.640
<v Speaker 1>of what I don't know if you saw the news

574
00:31:53.680 --> 00:31:57.240
<v Speaker 1>on Circle starting to dominate here in the US over tether.

575
00:31:58.119 --> 00:32:01.279
<v Speaker 1>I think Ripple has an opportun tunity here, especially with

576
00:32:01.359 --> 00:32:06.839
<v Speaker 1>the Clarity acts, potential to maybe hurt yield focused competitors

577
00:32:06.880 --> 00:32:12.039
<v Speaker 1>like USDC, which would favor RIL usd's payment settlement model.

578
00:32:12.079 --> 00:32:15.920
<v Speaker 1>What do you think, Well, Ripple doesn't have to share

579
00:32:15.960 --> 00:32:19.599
<v Speaker 1>in their profits exactly. Yeah, it's not even bottom line profits,

580
00:32:19.640 --> 00:32:23.079
<v Speaker 1>it's top line revenue that USD or Circle has to

581
00:32:23.119 --> 00:32:26.240
<v Speaker 1>share with coinbase, so that in and of itself gives

582
00:32:26.279 --> 00:32:27.000
<v Speaker 1>us an advantage.

583
00:32:27.000 --> 00:32:28.640
<v Speaker 2>And the other thing that I've pointed out is that

584
00:32:29.240 --> 00:32:33.359
<v Speaker 2>Ripple was using their own custodian. They were using their

585
00:32:33.400 --> 00:32:38.359
<v Speaker 2>own trust. Now they're using bny Mellon, but still just

586
00:32:38.400 --> 00:32:40.279
<v Speaker 2>being able to do some of that in house I

587
00:32:40.279 --> 00:32:43.680
<v Speaker 2>think helps. But they built this full financial stack, and

588
00:32:43.880 --> 00:32:46.599
<v Speaker 2>that's what the institutions are looking for. Right when you

589
00:32:46.599 --> 00:32:50.559
<v Speaker 2>go to Circle, you can get USDC and use USDC.

590
00:32:51.119 --> 00:32:54.440
<v Speaker 2>It's on multiple blockchains and it's grown substantially and a

591
00:32:54.440 --> 00:32:56.920
<v Speaker 2>lot of people in the United states trust it more

592
00:32:56.960 --> 00:32:59.880
<v Speaker 2>than tether. The problem is is that you don't have

593
00:33:00.160 --> 00:33:04.599
<v Speaker 2>financial stack around it like Ripple does. Right Circle and

594
00:33:04.720 --> 00:33:07.839
<v Speaker 2>Ripple two completely separate different companies, And I think that

595
00:33:07.960 --> 00:33:13.119
<v Speaker 2>Ripple has built out a much wider infrastructure, much stronger infrastructure,

596
00:33:13.880 --> 00:33:17.160
<v Speaker 2>where that client, that institution or bank can come in

597
00:33:17.720 --> 00:33:21.079
<v Speaker 2>and get full representation of all of those services that

598
00:33:21.119 --> 00:33:25.440
<v Speaker 2>Ripple provides. That I think is what pushes Ripple ahead

599
00:33:25.720 --> 00:33:28.559
<v Speaker 2>is they're going to be onboarding these institutions and banks.

600
00:33:29.279 --> 00:33:34.440
<v Speaker 2>Combining this with the programmability that's coming to the XRP ledger,

601
00:33:34.920 --> 00:33:39.920
<v Speaker 2>where these institutions could pair up RUSD with their deposit coin,

602
00:33:40.079 --> 00:33:42.960
<v Speaker 2>their staple cooin, their token i zewer world assets, whatever

603
00:33:43.000 --> 00:33:47.559
<v Speaker 2>that may be in the XRP ledger through permission domains,

604
00:33:47.920 --> 00:33:52.200
<v Speaker 2>permission decks, the on chain lendings coming, and so it'll

605
00:33:52.240 --> 00:33:56.599
<v Speaker 2>be a full institutional DeFi stack. So whether you want

606
00:33:56.640 --> 00:33:59.960
<v Speaker 2>to just use RUSD without Ripple, or you want to

607
00:34:00.119 --> 00:34:03.720
<v Speaker 2>use Ripple services, you'll have that option on an XRP ledger.

608
00:34:03.759 --> 00:34:06.759
<v Speaker 2>And so that's why everybody in the XRP community needs

609
00:34:06.759 --> 00:34:09.559
<v Speaker 2>to keep on cheering on ur USD growth and adoption.

610
00:34:10.039 --> 00:34:14.800
<v Speaker 2>It is absolutely not working against XRP. It is complementary

611
00:34:15.119 --> 00:34:18.920
<v Speaker 2>and supplementary to XRP, and and it helps bring liquidity

612
00:34:18.960 --> 00:34:21.000
<v Speaker 2>to our ledger that otherwise would just be there.

613
00:34:21.000 --> 00:34:23.519
<v Speaker 1>Big deal. Yeah, that's a big deal. One point six

614
00:34:23.599 --> 00:34:27.559
<v Speaker 1>billion right now. Remember that Ripple and Rust was able

615
00:34:27.599 --> 00:34:31.000
<v Speaker 1>to do that without any staking valuation in terms of

616
00:34:31.000 --> 00:34:35.440
<v Speaker 1>paying yields versus pretty much every other stable point out

617
00:34:35.440 --> 00:34:39.480
<v Speaker 1>there basically in that game. So I think that's another

618
00:34:39.559 --> 00:34:42.960
<v Speaker 1>factor into this. Let's flip back to the FED for

619
00:34:43.000 --> 00:34:44.679
<v Speaker 1>a second, because if.

620
00:34:44.519 --> 00:34:49.000
<v Speaker 2>You look at all, if I could one second look watch,

621
00:34:49.119 --> 00:34:52.039
<v Speaker 2>everybody needs to watch closely hidden Road, which is now

622
00:34:52.119 --> 00:34:57.000
<v Speaker 2>Ripple Prime. They will use that prime brokerage and the

623
00:34:57.079 --> 00:35:00.920
<v Speaker 2>trading that they're going to offer. I'm just aware that

624
00:35:00.960 --> 00:35:04.639
<v Speaker 2>they're working with various partners in companies right now to

625
00:35:04.679 --> 00:35:08.320
<v Speaker 2>be able to provide that yield to those partners as

626
00:35:08.320 --> 00:35:10.039
<v Speaker 2>well too. So you'll be able to earn yield on

627
00:35:10.239 --> 00:35:13.320
<v Speaker 2>chain on the XRP ledger through the lending protocol. But

628
00:35:13.360 --> 00:35:16.039
<v Speaker 2>then I think anybody who's partnered up with Ripple will

629
00:35:16.079 --> 00:35:19.639
<v Speaker 2>also be able to earn some yield through Ripple's prime

630
00:35:19.719 --> 00:35:22.159
<v Speaker 2>brokers service that they're running as well too. That'll be

631
00:35:22.159 --> 00:35:22.920
<v Speaker 2>interesting to watch.

632
00:35:23.880 --> 00:35:27.920
<v Speaker 1>Okay, so that will be because you're exactly right. If

633
00:35:27.960 --> 00:35:31.079
<v Speaker 1>we start to see those kind of activities, at least

634
00:35:31.119 --> 00:35:33.480
<v Speaker 1>on the institutional side. That's the thing I think that

635
00:35:33.519 --> 00:35:36.840
<v Speaker 1>we'll really bring our LUs D to the game is

636
00:35:37.440 --> 00:35:40.559
<v Speaker 1>the institutional adoption and use case of our LOSD as

637
00:35:40.599 --> 00:35:42.880
<v Speaker 1>it starts to roll out. And again, clarity is going

638
00:35:42.920 --> 00:35:45.519
<v Speaker 1>to be the cornerstone, which is why Brad is so

639
00:35:46.360 --> 00:35:50.320
<v Speaker 1>adamant of trying to get this thing done. Which is,

640
00:35:51.079 --> 00:35:52.719
<v Speaker 1>you know, whether you like or not, I still like

641
00:35:52.760 --> 00:35:55.719
<v Speaker 1>the you know, I'm still in the camp. I wish

642
00:35:55.800 --> 00:35:59.800
<v Speaker 1>that we could get through this without banning yields because that,

643
00:36:00.039 --> 00:36:03.719
<v Speaker 1>to me is a win for everyone. But the reality is,

644
00:36:03.719 --> 00:36:06.119
<v Speaker 1>I just don't think the banks are in a They're

645
00:36:06.199 --> 00:36:07.440
<v Speaker 1>not gonna play ball when it comes.

646
00:36:07.519 --> 00:36:09.880
<v Speaker 2>Well, even if we can get it with some activity,

647
00:36:10.239 --> 00:36:13.360
<v Speaker 2>you know, they call it rewards instead of yielding, you

648
00:36:13.440 --> 00:36:15.360
<v Speaker 2>have to do a certain amount of trading or do

649
00:36:15.440 --> 00:36:18.760
<v Speaker 2>some activities, I think that we would still be able to,

650
00:36:19.239 --> 00:36:23.320
<v Speaker 2>you know, see the space thrive in that sense. But yeah,

651
00:36:23.440 --> 00:36:26.360
<v Speaker 2>we'll be watching it closely. But that that ripple prime

652
00:36:26.440 --> 00:36:30.079
<v Speaker 2>flow is three trillion per year. Yeah, and so as

653
00:36:30.119 --> 00:36:33.480
<v Speaker 2>the collateral for that is r us D and a

654
00:36:33.480 --> 00:36:35.159
<v Speaker 2>lot of those flows start to move through r o

655
00:36:35.239 --> 00:36:39.000
<v Speaker 2>us D. R us D is the potential to grow rapidly,

656
00:36:39.119 --> 00:36:41.320
<v Speaker 2>and just to remind everybody, it's already growing at a

657
00:36:41.360 --> 00:36:45.239
<v Speaker 2>pace faster than tether did when it got started. Yeah,

658
00:36:45.280 --> 00:36:48.320
<v Speaker 2>so I think it's gonna be playing ketchup in a

659
00:36:48.360 --> 00:36:49.719
<v Speaker 2>big way if.

660
00:36:49.559 --> 00:36:53.159
<v Speaker 1>You look at I want to go backward to the

661
00:36:53.599 --> 00:36:58.119
<v Speaker 1>potential here around the FED and what the underlying situations

662
00:36:58.199 --> 00:37:00.920
<v Speaker 1>are looking and not only look at this from a

663
00:37:00.960 --> 00:37:04.960
<v Speaker 1>business perspective, because we run businesses. We of course we

664
00:37:05.000 --> 00:37:07.440
<v Speaker 1>look at the FED funds rate. This affects a lot

665
00:37:07.440 --> 00:37:10.199
<v Speaker 1>of lending. We work with a lot of companies that

666
00:37:10.239 --> 00:37:12.559
<v Speaker 1>are out there in this same position. You look at

667
00:37:12.559 --> 00:37:15.719
<v Speaker 1>the price shock right now that seems to still emerging

668
00:37:15.760 --> 00:37:18.360
<v Speaker 1>from what's happening in the Middle East. And if we

669
00:37:18.400 --> 00:37:20.760
<v Speaker 1>get a higher for a longer rate environment, which is

670
00:37:20.960 --> 00:37:24.320
<v Speaker 1>my concern right now, this is where I feel like

671
00:37:24.440 --> 00:37:29.559
<v Speaker 1>we would see a very big problem in a lot

672
00:37:29.599 --> 00:37:32.719
<v Speaker 1>of banks because of the flow in which we would

673
00:37:32.760 --> 00:37:36.280
<v Speaker 1>see loans coming on board, and if we don't see

674
00:37:36.320 --> 00:37:38.440
<v Speaker 1>some potential rate relief, I think that's going to be

675
00:37:39.039 --> 00:37:44.320
<v Speaker 1>a potential where this could underscore a much different outlook

676
00:37:44.400 --> 00:37:47.360
<v Speaker 1>for the US in term of the economy. What do

677
00:37:47.440 --> 00:37:51.119
<v Speaker 1>you think about that? If the market just slows down

678
00:37:51.480 --> 00:37:55.400
<v Speaker 1>at this higher for a longer pace, this very uncertain

679
00:37:56.079 --> 00:37:58.840
<v Speaker 1>situation in the Middle East, how do you think that

680
00:37:58.880 --> 00:37:59.480
<v Speaker 1>would play out?

681
00:38:01.480 --> 00:38:04.039
<v Speaker 2>It's going to be rough, because what people need to

682
00:38:04.079 --> 00:38:07.039
<v Speaker 2>remember is just because the Fed funds rate comes down

683
00:38:07.119 --> 00:38:10.239
<v Speaker 2>doesn't mean that the bond market's going to agree exactly.

684
00:38:10.280 --> 00:38:13.400
<v Speaker 2>And that's what's already been happening, is that Jerome pal

685
00:38:13.480 --> 00:38:16.800
<v Speaker 2>gave us a few rate cuts, but the bond market

686
00:38:16.880 --> 00:38:19.760
<v Speaker 2>gave Jerome power and the Fed the middle finger. This

687
00:38:19.840 --> 00:38:21.159
<v Speaker 2>is what I've been saying on my show for the

688
00:38:21.159 --> 00:38:24.800
<v Speaker 2>past year now. The bond market's not buying it right,

689
00:38:24.840 --> 00:38:27.559
<v Speaker 2>and this is why that tenure is pushed back up

690
00:38:27.719 --> 00:38:31.079
<v Speaker 2>towards four and a half percent, towards five percent, and

691
00:38:31.519 --> 00:38:34.039
<v Speaker 2>it's not going to provide any relief. The Fed can

692
00:38:34.119 --> 00:38:36.320
<v Speaker 2>cut rates all day long, but if the bond market

693
00:38:36.320 --> 00:38:39.880
<v Speaker 2>doesn't play ball, and nobody's forcing the bond market too,

694
00:38:40.199 --> 00:38:42.599
<v Speaker 2>the bond market's got a it's a mind of its

695
00:38:42.599 --> 00:38:46.760
<v Speaker 2>own and usually gets right. There's a reason why the

696
00:38:47.159 --> 00:38:51.599
<v Speaker 2>bond want the bond purchasers want more yield. It's because

697
00:38:51.599 --> 00:38:53.480
<v Speaker 2>they know that we're going to continue to run deficits.

698
00:38:53.599 --> 00:38:55.840
<v Speaker 2>We have a huge debt problem, and we're going to

699
00:38:55.880 --> 00:38:58.840
<v Speaker 2>continue to debase the currency. So they're saying, we need

700
00:38:58.880 --> 00:39:01.599
<v Speaker 2>more for our money. And I think that that's the

701
00:39:01.639 --> 00:39:03.679
<v Speaker 2>problem that we face here in twenty twenty six is

702
00:39:03.719 --> 00:39:07.280
<v Speaker 2>that even within the new FED chair coming in, the

703
00:39:07.360 --> 00:39:11.760
<v Speaker 2>rate cuts will already be priced in. And you know,

704
00:39:12.000 --> 00:39:14.920
<v Speaker 2>even if it's a drastic you know, fifty basis or

705
00:39:14.960 --> 00:39:16.840
<v Speaker 2>even he does a couple of rate cuts to get

706
00:39:16.880 --> 00:39:20.239
<v Speaker 2>it down a full percent, the bond market has to

707
00:39:20.280 --> 00:39:22.960
<v Speaker 2>play ball for it to make a difference. Is you know,

708
00:39:22.960 --> 00:39:25.519
<v Speaker 2>we try to roll over trillions of real estate debt,

709
00:39:26.079 --> 00:39:30.079
<v Speaker 2>we have a private credit crisis that needs to be solved,

710
00:39:30.840 --> 00:39:33.880
<v Speaker 2>and we have record high student loan debt, credit card debt,

711
00:39:34.400 --> 00:39:39.760
<v Speaker 2>mortgage debt and by now pay later being used for

712
00:39:39.880 --> 00:39:43.280
<v Speaker 2>sixty percent of the cool kids going to Coachella tells

713
00:39:43.280 --> 00:39:47.119
<v Speaker 2>you exactly where we're at in our economy, right, Higher

714
00:39:47.119 --> 00:39:51.400
<v Speaker 2>for longer makes everybody bleed out more. And so yeah,

715
00:39:51.480 --> 00:39:53.880
<v Speaker 2>until the bond market plays ball, we won't have any relief.

716
00:39:55.079 --> 00:39:58.880
<v Speaker 1>Well, let's just not forget guys, this is still instability.

717
00:39:59.280 --> 00:40:01.480
<v Speaker 1>I think a lot due to what's happening with the

718
00:40:01.519 --> 00:40:04.960
<v Speaker 1>Middle East. I mean, you have US oil price is

719
00:40:05.000 --> 00:40:08.519
<v Speaker 1>now hitting almost one hundred bucks a barrel now, especially

720
00:40:08.559 --> 00:40:11.079
<v Speaker 1>even as we head out in this week, it's likely

721
00:40:11.119 --> 00:40:17.000
<v Speaker 1>that we're seeing another whipsaw on you know, the progress

722
00:40:17.039 --> 00:40:20.159
<v Speaker 1>of peace talks being you know, stalled again. So if

723
00:40:20.159 --> 00:40:23.079
<v Speaker 1>we see another push toward one hundred dollars barrel oil,

724
00:40:23.599 --> 00:40:26.480
<v Speaker 1>which remember is market price, that's what's driving that. It's

725
00:40:26.519 --> 00:40:29.280
<v Speaker 1>market price. It's all the all the needs in the

726
00:40:29.320 --> 00:40:33.880
<v Speaker 1>EU in Asia that drives our gas prices here. I

727
00:40:33.920 --> 00:40:37.199
<v Speaker 1>don't know if people realize that it's not oil going up,

728
00:40:37.920 --> 00:40:40.719
<v Speaker 1>it is the market paying more for it because the

729
00:40:40.800 --> 00:40:43.639
<v Speaker 1>demand is different in terms of the supply side. So

730
00:40:44.719 --> 00:40:46.199
<v Speaker 1>big difference there for sure.

731
00:40:46.760 --> 00:40:49.400
<v Speaker 2>And even if okay, even if we open it up too,

732
00:40:49.920 --> 00:40:52.920
<v Speaker 2>you don't get relief right away exactly. It's the same

733
00:40:52.920 --> 00:40:55.000
<v Speaker 2>thing as the FED cutting rates doesn't mean you get

734
00:40:55.000 --> 00:40:58.079
<v Speaker 2>relief right away you open up the straight you have

735
00:40:58.119 --> 00:41:00.679
<v Speaker 2>a peace deal is a big deal. Difference between a

736
00:41:00.719 --> 00:41:02.880
<v Speaker 2>peace deal getting signed for the press to take some

737
00:41:02.920 --> 00:41:07.719
<v Speaker 2>pictures and the oil tankers arriving and reaching those production

738
00:41:07.840 --> 00:41:11.199
<v Speaker 2>facilities and we're up to ninety seven dollars per barrel

739
00:41:11.239 --> 00:41:13.599
<v Speaker 2>this morning, so we're already kind of trending back up

740
00:41:13.639 --> 00:41:14.880
<v Speaker 2>as we start this week.

741
00:41:15.480 --> 00:41:18.400
<v Speaker 1>Yeah. Yeah, And I think a lot of people are

742
00:41:18.400 --> 00:41:22.639
<v Speaker 1>still saying that, you know, the futures markets are essentially lying,

743
00:41:22.639 --> 00:41:24.840
<v Speaker 1>because the futures market are calling this for a much

744
00:41:24.840 --> 00:41:28.280
<v Speaker 1>lower price, and I'm I think many people are saying,

745
00:41:28.320 --> 00:41:31.159
<v Speaker 1>I'm not sure we're buying this yet, unless, of course,

746
00:41:31.199 --> 00:41:35.079
<v Speaker 1>we get something major in terms of a relief in

747
00:41:35.960 --> 00:41:38.920
<v Speaker 1>the Middle East, which is the bigger play here for sure.

748
00:41:40.360 --> 00:41:43.800
<v Speaker 1>Last stablecrorn we've covered, I wanted to hit on one

749
00:41:43.840 --> 00:41:46.960
<v Speaker 1>other things and we talked about the k bank move,

750
00:41:47.559 --> 00:41:50.840
<v Speaker 1>which I think is a good thing right now. Are

751
00:41:50.880 --> 00:41:55.239
<v Speaker 1>you expecting any major announcements at the XRP Las Vegas event.

752
00:41:57.159 --> 00:42:00.599
<v Speaker 2>Well, I don't want to shiel any tokens, Paul. I

753
00:42:00.599 --> 00:42:06.400
<v Speaker 2>guys watching ZBCN very closely. Though. We saw it run

754
00:42:06.480 --> 00:42:10.280
<v Speaker 2>up last year in the XRP Vegas and my community

755
00:42:10.400 --> 00:42:12.599
<v Speaker 2>was on that. We made some good money on that one.

756
00:42:12.840 --> 00:42:15.519
<v Speaker 2>I'm watching it again. I'm actually going to be interviewing

757
00:42:15.559 --> 00:42:18.199
<v Speaker 2>their CEO for the second time here at the start

758
00:42:18.239 --> 00:42:21.000
<v Speaker 2>of May. But I would take a look at that

759
00:42:21.039 --> 00:42:24.920
<v Speaker 2>one guys. They might be doing a partnership with Ripple.

760
00:42:24.920 --> 00:42:27.280
<v Speaker 2>There might be something in the works there between ZEBEC

761
00:42:27.360 --> 00:42:30.719
<v Speaker 2>and Ripple. So that's the project I would watch sure.

762
00:42:30.559 --> 00:42:31.840
<v Speaker 1>To be there at that event.

763
00:42:32.599 --> 00:42:36.440
<v Speaker 2>Yeah, yep. And so it's already ran up about seventy

764
00:42:36.440 --> 00:42:40.360
<v Speaker 2>percent since I got into it a couple months ago again,

765
00:42:41.599 --> 00:42:43.320
<v Speaker 2>and so that's one that I would watch out for.

766
00:42:44.199 --> 00:42:47.840
<v Speaker 2>I do think that you'll see great conversations there at

767
00:42:47.840 --> 00:42:52.000
<v Speaker 2>the conference as always, and it's a good mix of

768
00:42:52.079 --> 00:42:56.119
<v Speaker 2>the retail XRP community, but then Brad Kimes has done

769
00:42:56.119 --> 00:42:59.119
<v Speaker 2>a great job of getting these bigger institutional players in

770
00:42:59.159 --> 00:43:04.039
<v Speaker 2>the room having conversations where they'll be more candid about,

771
00:43:04.159 --> 00:43:08.960
<v Speaker 2>you know, what they're saying. And I think that as

772
00:43:08.960 --> 00:43:13.280
<v Speaker 2>far as announcements go, I would be on the lookout.

773
00:43:13.440 --> 00:43:16.239
<v Speaker 2>There's there's some big breakthroughs right now on the amendment

774
00:43:16.280 --> 00:43:19.159
<v Speaker 2>side on the XRP ledger yep. And so I'm interested

775
00:43:19.159 --> 00:43:22.039
<v Speaker 2>to see Ripple maybe talking more about how the lending

776
00:43:22.039 --> 00:43:25.119
<v Speaker 2>protocol will roll out some of those things. The clock

777
00:43:25.199 --> 00:43:28.519
<v Speaker 2>bros Are going to be doing their uh yep, that'll be.

778
00:43:28.559 --> 00:43:32.119
<v Speaker 1>Interviewing them on stage. We'll be talking about that. Yeah,

779
00:43:32.719 --> 00:43:36.880
<v Speaker 1>But there's there's a lot of interesting I think situations

780
00:43:36.920 --> 00:43:39.840
<v Speaker 1>that because of the timing, you know, as you can see,

781
00:43:39.880 --> 00:43:42.079
<v Speaker 1>I mean, you see all the companies right here. I'll

782
00:43:42.119 --> 00:43:44.559
<v Speaker 1>just click on that just to show you. I mean,

783
00:43:44.599 --> 00:43:45.679
<v Speaker 1>this is Lair two.

784
00:43:46.039 --> 00:43:47.440
<v Speaker 2>Flair is to keep on.

785
00:43:47.679 --> 00:43:49.920
<v Speaker 1>Well, there's the back right there. They're a top sponsor.

786
00:43:50.920 --> 00:43:54.000
<v Speaker 1>I trust you've got Solana that's going to be there.

787
00:43:54.880 --> 00:43:57.840
<v Speaker 1>Flair is gonna be doing. We'll have Hugo on. Uh.

788
00:43:57.880 --> 00:44:01.360
<v Speaker 1>It's going to be quite a h there's virtual protocol

789
00:44:01.440 --> 00:44:05.599
<v Speaker 1>coming in. Bit wise, of course there's us. There's a

790
00:44:05.639 --> 00:44:08.119
<v Speaker 1>lot happening out there. I think we may end up

791
00:44:08.159 --> 00:44:11.079
<v Speaker 1>seeing something pretty big happening. So you guys go over

792
00:44:11.840 --> 00:44:14.320
<v Speaker 1>get your tickets. If you are going to take a

793
00:44:14.400 --> 00:44:17.880
<v Speaker 1>late flight into Vegas, you can still make it. It's

794
00:44:18.000 --> 00:44:22.239
<v Speaker 1>Monday as we record this with Zach Rector, and all

795
00:44:22.280 --> 00:44:24.400
<v Speaker 1>you have to do is make it in two days

796
00:44:24.920 --> 00:44:28.320
<v Speaker 1>and twelve hours and you're there making it happen.

797
00:44:28.400 --> 00:44:30.960
<v Speaker 2>It's always it's always cheap and easy to get there

798
00:44:30.960 --> 00:44:34.920
<v Speaker 2>to Vegas. Paul. It's a matter of getting out with anybody.

799
00:44:35.360 --> 00:44:37.920
<v Speaker 1>Oh, it's terrible, it's terrible. Yeah, Hey, what do you

800
00:44:37.960 --> 00:44:41.199
<v Speaker 1>think about Vegas right now? I mean, I'm seeing such

801
00:44:41.280 --> 00:44:44.440
<v Speaker 1>a I have some friends that have real estate out there.

802
00:44:44.440 --> 00:44:47.760
<v Speaker 1>They're telling me that the market is falling apart.

803
00:44:48.280 --> 00:44:51.519
<v Speaker 2>Yep. Yeah, it's one of the metros that we pointed

804
00:44:51.519 --> 00:44:53.880
<v Speaker 2>out last year. We started to talk about the real

805
00:44:54.000 --> 00:44:57.599
<v Speaker 2>estate reset is what I called it, and Vegas was

806
00:44:57.639 --> 00:45:01.119
<v Speaker 2>flooded with a bunch of the builders. Any of these

807
00:45:01.159 --> 00:45:05.679
<v Speaker 2>markets where the builders went berserk are correcting pretty hard

808
00:45:05.760 --> 00:45:07.920
<v Speaker 2>right now. The builders are doing a lot of rape

809
00:45:07.920 --> 00:45:12.519
<v Speaker 2>buydown incentives. So I'll tell your community the same thing

810
00:45:12.559 --> 00:45:15.039
<v Speaker 2>I tell mine. Go beat up the builders in these

811
00:45:15.079 --> 00:45:20.000
<v Speaker 2>markets in Vegas and Phoenix and Dallas, Fort Worth, most

812
00:45:20.039 --> 00:45:25.559
<v Speaker 2>of South Florida. It's a great opportunity. And I think

813
00:45:26.639 --> 00:45:29.039
<v Speaker 2>it obviously real estate's and asset class that we continue

814
00:45:29.039 --> 00:45:31.880
<v Speaker 2>to pay attention to. It's for sure so important to

815
00:45:31.920 --> 00:45:35.119
<v Speaker 2>our portfolio and just our wealth as a whole, so

816
00:45:35.320 --> 00:45:39.880
<v Speaker 2>be strategic about that. And I think that it has

817
00:45:39.920 --> 00:45:42.480
<v Speaker 2>become a buyer's market and a lot of these bigger metros,

818
00:45:43.159 --> 00:45:45.039
<v Speaker 2>So yeah, go take advantage of it.

819
00:45:45.760 --> 00:45:49.119
<v Speaker 1>I like it. Zach Rector always fun chatting with you guys.

820
00:45:49.519 --> 00:45:52.719
<v Speaker 1>Make sure I visit Zach over on YouTube. Follow him there.

821
00:45:53.239 --> 00:45:55.119
<v Speaker 1>What's your Twitter handle?

822
00:45:56.559 --> 00:45:57.440
<v Speaker 2>Zach Rector seven.

823
00:45:58.559 --> 00:45:59.000
<v Speaker 1>There you go.

824
00:45:59.159 --> 00:46:02.480
<v Speaker 2>Okay, Zach right yourself. My name is also my website too,

825
00:46:02.599 --> 00:46:04.880
<v Speaker 2>so just Zach record dot com. Everybody can find my

826
00:46:05.239 --> 00:46:07.039
<v Speaker 2>our social media and stuff there.

827
00:46:08.159 --> 00:46:10.320
<v Speaker 1>Thanks again, guys, we will catch you later on the

828
00:46:10.400 --> 00:46:11.480
<v Speaker 1>X or papod. Take care,