Speaker 1: Global custody bank. Stage Street, with forty four trillion dollars
Speaker 1: of asset under management, is expanding its crypto services, and
Speaker 1: Tether has issued another billion USDT just last week they
Speaker 1: did the same. So we can see these stable coins
Speaker 1: enter the market pretty soon and we will see higher prices.
Speaker 1: We're going to break this down and much more. Let's
Speaker 1: get into it. Hey, everybody, welcome into the Thinking Crypto podcast.
Speaker 1: I'm your host, Tony Edward. On your way in. Please
Speaker 1: sit that subscribe button as well as a thumbs up
Speaker 1: button and leave a comment below. If you're listening on
Speaker 1: a podcast platform such as Spotify or Apple, please leave
Speaker 1: a five star rating and review. Well, folks, the big
Speaker 1: news of the day is that State Street has selected
Speaker 1: Taurus for crypto custody and tokenization. Now this is not
Speaker 1: the first go round for State Street with crypto, if
Speaker 1: you recall back in June, they announced that partnership with
Speaker 1: Galaxy Digital that's Mike Novogratz to develop crypto trading products.
Speaker 1: So we're seeing all of Wall Street guys jumping into
Speaker 1: the crypto asset class. They are building new technology, they're
Speaker 1: adding crypto to their portfolio of financial products and they're
Speaker 1: expanding globally with these services, so it's very bullish, right.
Speaker 1: These folks know the deal, they know what's coming, that
Speaker 1: crypto's here to stay. The world is going to run
Speaker 1: on blockchain, so they're trying to position themselves to get
Speaker 1: as much market share as possible. So here are the details.
Speaker 1: State Street, the global custody bank with forty four point
Speaker 1: three trillion dollars in assets under its watch, chose cryptocurrency
Speaker 1: custody and tokenization specialists tourists to provide digital assets services
Speaker 1: in anticipation of a more congenial regulatory climate in the US.
Speaker 1: The bank's initial focus is to go live with tokenized
Speaker 1: versions of traditional assets, with the first client named shortly afterward.
Speaker 1: Stage Street said a natural role for a custody specialist
Speaker 1: like State Street would be to look after digital assets.
Speaker 1: Banks in the US have been forced with a major
Speaker 1: hurdle in the form of the SEC's Staff Accounting Bulletin
Speaker 1: one two one, also known as SAB one two one,
Speaker 1: which imposes restrictions on companies that want to hold their
Speaker 1: customer's crypto assets. So this is the BS rule that
Speaker 1: was repealed in the House and the Senate, but unfortunately
Speaker 1: Joe Biden veto the ultimate repeal. But it's a BS
Speaker 1: rule from the SEC that they're trying to block many
Speaker 1: of these banks some custody and crypto because it all
Speaker 1: goes back to Elizabeth Warren and nonsense that she's been doing.
Speaker 1: So these banks are finding other avenues of being able
Speaker 1: to custody crypto while the regulations are being worked out
Speaker 1: now a couple of things. They're launching et apps, they're tokenizing,
Speaker 1: they're doing all types of different things with blockchain and crypto, folks,
Speaker 1: And I hope you see what's happening. This is taking
Speaker 1: place while many investors in the market right now are bored,
Speaker 1: are angry, are frustrated, right They're feeling tired of the
Speaker 1: price not doing anything, moving sideways, a lot of volatility.
Speaker 1: But this is why on this podcast we've preached being
Speaker 1: patient and having the macro view on this market. Guys,
Speaker 1: there's a ton more capital waiting to come into this market,
Speaker 1: but we need the proper regulations and we need both
Speaker 1: Democrats and Republicans to work together. And this is why
Speaker 1: I've been pushing the narrative that look, I'm not telling
Speaker 1: you to vote for Kamala Harris I'm not telling you
Speaker 1: to vote for Donald Trump. But the one issue we
Speaker 1: need both sides of the aisle to come together on
Speaker 1: is crypto so that we can get the full legislation
Speaker 1: and regulations and we can allow more capital to come in. Now,
Speaker 1: ultimately crypto is going to win. The point is I
Speaker 1: wanted to happen sooner than later so my bags can
Speaker 1: go up. I've been very open and transparent. I'm here
Speaker 1: to make money. I do believe in the technology. I
Speaker 1: do believe in the application of it and the benefits
Speaker 1: and the improvements is going to bring to the world.
Speaker 1: But first and foremost, I'm trying to get financial freedom,
Speaker 1: and secondarily I will want to see the adoption of
Speaker 1: the technology. So let me continue here. State Street has
Speaker 1: been very vocal about the need to change SAWM one
Speaker 1: two one, which could force banks seeking to hold crypto
Speaker 1: to maintain an owner's amount of capital to compensate for
Speaker 1: the risk, said Dona Millrod, state Street's chief product Officer
Speaker 1: and head of Digital Asset Solutions. All of these banks
Speaker 1: and Wall Street firms now have a head of Digital
Speaker 1: assets right what it's Goldman SAgs On Morgan Stanley. They
Speaker 1: all have a person leading on crypto. They have a division,
Speaker 1: a team. It's pretty amazing. This was not here when
Speaker 1: I got into crypto, which was in late twenty sixteen.
Speaker 1: So here's the quote from Milrod. While we're starting with tokenization,
Speaker 1: that's not where we're ending. As soon as the US
Speaker 1: regulations help us out, we will be providing digital custody
Speaker 1: services as well. We know how to be a custodian.
Speaker 1: We don't do that on our balance we do that
Speaker 1: off balance sheet. They're not our assets. Lamin Brahamini, co
Speaker 1: founder and managing partner of Switzerland based Taurus, pointed to
Speaker 1: the benefits of tokenizations such as twenty four to seven
Speaker 1: trading and the ability to optimize collateral management, while echoing
Speaker 1: the need for a better regulatory climate in the US.
Speaker 1: Notice what was mentioned here twenty four to seven trading?
Speaker 1: What have I been saying for years? What did I
Speaker 1: write in my book twenty four to seven Trading Global Markets?
Speaker 1: Three hundred and sixty five days per year, no borders, guys.
Speaker 1: And the reason why tokenization is so significant is that
Speaker 1: they're going to put stocks and commodities and all the
Speaker 1: securities of tradfi onto the blockchain and tokenize it. And
Speaker 1: you will be able to fractionalize things like I said
Speaker 1: twenty four to seven trading, instant settlement, and it's going
Speaker 1: to make markets more efficient. There's going to be more liquidity,
Speaker 1: it's going to open up secondary and tertiary markets. This
Speaker 1: is why I'm bullish, folks. World will be running on blockchain.
Speaker 1: It's the token economy that once again I wrote about
Speaker 1: my book. I've been telling you guys for years these
Speaker 1: things are happening. It's not making the major headlines on
Speaker 1: CNN or Fox Business, but these Wall Street banks and
Speaker 1: the biggest financial institutions in the world are building, and
Speaker 1: clearly we see the trajectory that they're on here. So
Speaker 1: here's a quote from Brahamini. I'm quite sure this partnership
Speaker 1: with State Street will be a positive signal for the
Speaker 1: US financial markets in general, which because of SAVO one
Speaker 1: two one have been lagging those in Europe. So huge,
Speaker 1: huge news, guys. I'm so bullish and I'm excited for
Speaker 1: this bullmarket. But also, like I've been saying, for the
Speaker 1: future bullmarkets, twenty twenty eight the next bitcoin having and
Speaker 1: that bullmarket run into twenty twenty nine to twenty thirty.
Speaker 1: So I've told you guys my plan cash hop profits
Speaker 1: in this respective bullmarket. We haven't hit the top yet.
Speaker 1: Take some of that profits, spend some of it of
Speaker 1: course for lifestyle chips right, pay off some debt, and
Speaker 1: reinvest some of it, some of it in crypto, some
Speaker 1: of it in the Nasdaq and traditional assets and possibly
Speaker 1: real estate. So I'm looking to squeeze as much juice
Speaker 1: out of this orange as possible, grow my net worth,
Speaker 1: and build up my retirement nest egg. So those are
Speaker 1: my plans, folks. I don't know what your plans are,
Speaker 1: but I'm not trying to go buy a lamb ball.
Speaker 1: I'm trying to get financial freedom, eliminate debt, and once
Speaker 1: again have that nest egg for retirement. So this is
Speaker 1: huge news, and like I said, it's not the first
Speaker 1: go round for State Street. They're working with Galaxy Digital
Speaker 1: building out crypto trading products. Now, in context of that,
Speaker 1: it's important for me to rehash this news from just
Speaker 1: August fifteenth, or last week that we saw through SEC filings,
Speaker 1: the thirteen aps that Goldman, Sachs and Morgan Stanley are
Speaker 1: holding billions of dollars worth of bigcoin et apps. They
Speaker 1: are invested in the black Rock, bigcoin ETFs, Fidelity and
Speaker 1: so forth. So again we're seeing actual facts here of
Speaker 1: these Wall Street institutions and the biggest financial institutions in
Speaker 1: the world embracing crypto, launching products, building with it, and
Speaker 1: much more. Now here's some data about the bitcoin ETF
Speaker 1: exposure for the top twenty five hedge funds. So sixty
Speaker 1: percent of the largest hedge funds have disclosed bitcoin ETF holdings.
Speaker 1: See the direction we're going in here, folks, and wait
Speaker 1: till we have more all coin ETFs, you're going to
Speaker 1: see capital coming into a variety of them, ethereum eventually Solana,
Speaker 1: XRP and so on and so forth. Now there's some
Speaker 1: news today that I'm going to highlight that the SEC
Speaker 1: is trying to roadblock the Salon ETF. But once again,
Speaker 1: these roadblocks can be put up, but we know it's
Speaker 1: not a matter of if, it's a matter of when,
Speaker 1: And you know it could happen next year. You know,
Speaker 1: let's say Gary Ganser is out and there's new thisscrypto
Speaker 1: regulations that have been passed. You know that could change
Speaker 1: very easily. But nevertheless, today, black Rock, Spot Bitcoin ETF, I,
Speaker 1: bit did seven hundred and twenty eight million dollars in
Speaker 1: trading volume today, So we're seeing a lot of buying
Speaker 1: up and there's demand for them from the institutional investors
Speaker 1: in all of Wall Street. They want this acid class.
Speaker 1: And you know, I go back to what Paul Tudor
Speaker 1: Jones said in twenty twenty, and it really clicked for me.
Speaker 1: He said, bitcoin and crypto is the fastest horse in
Speaker 1: the race. In an environment where they're printing trillions of dollars,
Speaker 1: I could go investment in real estate, i could put
Speaker 1: it in the stock market, but I'm going to put
Speaker 1: it into bitcoin and crypto because it has the faster
Speaker 1: appreciation and value. And we've seen Bitcoin has been the
Speaker 1: best performing acid over the past ten to eleven years.
Speaker 1: Not to mention all coins, right, Bitcoin is usually the
Speaker 1: measuring stick that they use to compare to other assets
Speaker 1: because it's the most mature in the crypto acid class.
Speaker 1: But many all coins have outperformed Bitcoin. That that is
Speaker 1: a fact. But you know, for the mass, you can't
Speaker 1: go throw one hundred all coins to them and say hey,
Speaker 1: here's avax or here's Salona. They're like, what the hell
Speaker 1: are you talking about? But they know about bitcoin because
Speaker 1: that has the branding, So you have to understand the
Speaker 1: narratives and the nuances of presenting this to people. But guys,
Speaker 1: this is why I'm bullsh and crypto. This is why
Speaker 1: a majority of my investment capital is in crypto versus
Speaker 1: you know, the NASLAC and traditional assets. We also got
Speaker 1: news that Tether has minted another billion USDT last week.
Speaker 1: I highlighted this, I tweeted about it and so forth
Speaker 1: while I was in Punta Kana. Looks like whales are
Speaker 1: starting to grab up stable coins and this is a
Speaker 1: big indication of liquidity that is going to be put
Speaker 1: into the market now that you know, they're going to
Speaker 1: buy the dips and we're going to eventually see all
Speaker 1: these things reflected as the market starts to pump. And
Speaker 1: it's not only Tether. We saw USDC. Millions in us
Speaker 1: DC issued by Circle have been issued over the past
Speaker 1: three weeks. So these are the different data points and
Speaker 1: metrics I use to get an idea what's happening in
Speaker 1: the market, not my feelings, not my emotions. And I
Speaker 1: say that for the new people who are listening my
Speaker 1: og listeners. You know the deal. We don't move by emotions. Here,
Speaker 1: we don't invest by emotions. We look at the charts,
Speaker 1: look at the fundamentals, the macro factual information such as
Speaker 1: stable coin volume, stable coin supply, the number of bitcoin
Speaker 1: and exchanges, all these different metrics. Right, but very bullish
Speaker 1: signed here, folks. We continue to see stable coins being minted. Now.
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Speaker 1: If you'd like to learn more about v chain, go
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Speaker 1: earlier I mentioned the Solana ETF situation, so we got
Speaker 1: the headline here the SEC rejected the CBOES nineteen bdsh
Speaker 1: war filings for Solana ETFs. So look, Yary Ganser up
Speaker 1: to his nonsense. But we know that, you know, the
Speaker 1: typical process has been, you got to have a futures
Speaker 1: market and then you get the spot. But you know,
Speaker 1: I see this more as a delay tactic. You know,
Speaker 1: this could happen next year once again, if there's a
Speaker 1: regime change, and I think Gary Ginser is out, whether
Speaker 1: Kamala Harris or Donald Trump wins, I think Gary is
Speaker 1: going to be out for sure. And we know Congress
Speaker 1: is working in regulations, so this could all change by
Speaker 1: next Here, this is not really surprising, especially that Solana
Speaker 1: was named in some of the recent lawsuits against crypto
Speaker 1: exchanges like Coinbase and so forth. Now, in the Binance case,
Speaker 1: we know Solana and a bunch of other tokens were removed,
Speaker 1: but we don't have concrete evidence that the SEC has
Speaker 1: officially dropped Solana out of its radar of targeting as
Speaker 1: a security. But look, we're dealing with scumbag regulator Gary Genser.
Speaker 1: So until then we got to keep fighting folks. Now,
Speaker 1: something interesting happened with Binance. Bill Hughes, who have had
Speaker 1: on the podcast he's a lawyer, Consensus said Binance and
Speaker 1: CZ were sued last Friday by class plaintiffs in Seattle
Speaker 1: Federal Court and interesting class action brought by top class
Speaker 1: action lawyers alleging consumer harm as a result of Binance's
Speaker 1: money laundering and the natural predictable follow on civil action
Speaker 1: that seeks to capitalize or depending on how you characterize
Speaker 1: these things, recover on the government prosecutions and enforcement actions
Speaker 1: from earlier this year. He says. The TLDR here is
Speaker 1: these plaintiffs and the class of US consumers they represent
Speaker 1: had their cryptos stolen in hacks and other thefts, and
Speaker 1: those funds were sent to Binance for laundering, which Binance
Speaker 1: was aware of and to some extent encourage as its
Speaker 1: lucrative business model. Plaintiffs say this injured them as Binance
Speaker 1: was an essential part of the laundering and constitutes illegal
Speaker 1: racketeering that violates the Rico Statute. Look, we'll see what
Speaker 1: happens here, but you know everybody's going to try to
Speaker 1: come for their pound or flesh from Binance. The amount
Speaker 1: of money they paid I think over four billion dollars
Speaker 1: in penalties. And it's just because they weren't doing proper
Speaker 1: kycaml They weren't doing any major fraud or anything like that.
Speaker 1: It wasn't like FTX, you know what Sam Bechmerfried was doing,
Speaker 1: stealing customer funds and trading with them and all that jazz. Right,
Speaker 1: But we'll see, we'll see where this goes. But just
Speaker 1: want to let you guys know about it. Paradigm leads
Speaker 1: seven point five million dollars seed round of Currella Labs
Speaker 1: that aims to solve Ethereum's MeV problem. So this is interesting.
Speaker 1: The startup is building tools to solve Ethereum's MeV problem.
Speaker 1: At the Application Layer, co founder and CEO Ludwick thuven
Speaker 1: And told the block if I said his name right there,
Speaker 1: so you may be saying, what the hell is MeV,
Speaker 1: It's the maximum extractable value. So MeV refers to the
Speaker 1: profit validators or bots that can extract by re ordering, inserting,
Speaker 1: or sensoring transactions within the block. Common MeV strategies include
Speaker 1: front running, executing trades before others, sangwich attacks, trading before
Speaker 1: and after large transactions and arbitrage profiting from price differences
Speaker 1: across platforms. These practices can result in higher costs for
Speaker 1: DeFi users and can give an unfair advantage to those
Speaker 1: with more resources. So, guys, it's great to see that
Speaker 1: these things are being worked on and solutions are being
Speaker 1: brought to the table, and also that there is capital
Speaker 1: being given to companies to solve these problems. That's very
Speaker 1: healthy in an growing emerging asset class. Now VC's back
Speaker 1: AI focused blockchain team building internet connected smart contracts. So
Speaker 1: yeager ai, the development team behind the decentralized AI network
Speaker 1: gen Layer, raised a seven point five million dollar seed
Speaker 1: round led by North Island Ventures. Gen Layer uses non
Speaker 1: deterministic smart contracts and a bespoke delegated proof of steak
Speaker 1: algorithm to enable new types of applications that interact with
Speaker 1: real time information. Guys, it's so hard to keep up
Speaker 1: with all the new projects and all the things that
Speaker 1: are being built. It feels very much like the dot
Speaker 1: com boom, where there's a lot of different projects, but
Speaker 1: not all of them are going to be a winner,
Speaker 1: so we have to watch it closely, but clearly, you know,
Speaker 1: with the AI blockchain fusion, so to speak. We are
Speaker 1: seeing a lot of new projects popping up, new solutions,
Speaker 1: and I'm excited, but also you've got to be careful,
Speaker 1: right just watch what's going on. How you want to
Speaker 1: enter some of these projects, whether they have a token.
Speaker 1: Is it a short term hold where you run, you know,
Speaker 1: runs up with the liquidity that comes from the vcs
Speaker 1: and the bull market liquidity, or is it a long
Speaker 1: term hold because it is legitly solving a massive real
Speaker 1: world use case that you may want to hold for
Speaker 1: multiple cycles. So you want to strategize accordingly and obviously
Speaker 1: look at the pros and cons up some of these projects. Well, folks,
Speaker 1: that's the news. I would love to hear what you
Speaker 1: guys think about the State Street news. I think it's
Speaker 1: pretty significant. That's that's a huge bank, guys, And it's
Speaker 1: like we've always been talking about gain theory. Black Rock
Speaker 1: made the first move. Now all of Wall Street, it's
Speaker 1: following Goldman, Sachs, Morgan, Stanley, State Street, you, Fidelity, They're
Speaker 1: all coming in line. Blackrock was the first domino and
Speaker 1: the out dominoes are falling now. So I'm excited. I'm bullish.
Speaker 1: I know the price doesn't reflect that right now. It's
Speaker 1: boring zone, but be patient and have the macro outlook, folks.
Speaker 1: Liquidity is coming back. It's on the rise globally. Stable
Speaker 1: coin volume is increasing or supply is increasing, and we're
Speaker 1: going to go through the seasonality of the market cycle.
Speaker 1: So come I think after mid September into Q four,
Speaker 1: we're going to start to see the markets move significantly,
Speaker 1: So be patient. Guys, don't forget to sign up for
Speaker 1: my free email newsletter on substack. It's one hundred percent free.
Speaker 1: Link will being a description. Also, you can support me
Speaker 1: by grabbing a copy of my book, Rethinking Crypto on
Speaker 1: Amazon or Barnes Andnobles dot com. It's available in paperback
Speaker 1: and digital. If you bought a copy already, please leave
Speaker 1: a five star rating and review. It really helps out
Speaker 1: my rankings and I appreciate you all. Thank you for watching, listening,
Speaker 1: and I'll talk to you all later